Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. spando apparel uses the lifo inventory method for

Spando Apparel uses the LIFO inventory method for external reporting and for income tax purposes...

70.2K

Verified Solution

Question

Accounting

Spando Apparel uses the LIFO inventory method for external reporting and for income tax purposes but maintains its internal records using FIFO. The following disclosure note was included in a recent annual report: Inventories ($ in millions):

2021 2020
Total inventories $ 649 $ 628
LIFO reserve (99 ) (59 )
$ 550 $ 569

The companys income statement reported cost of goods sold of $3,200 million for the fiscal year ended December 31, 2021. Required: 1. Spando adjusts the LIFO reserve at the end of its fiscal year. Prepare the December 31, 2021, adjusting entry to record the cost of goods sold adjustment. 2. If Spando had used FIFO to value its inventories, what would cost of goods sold have been for the 2021 fiscal year?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Chemistry
1.2K views

A sample of a peptide of unknown sequence was treated with trypsin; another sample of the...

Biology
1.2K views

When it is said that microbes are ubiquitous, it means thata. microbes in the environment...

Physics
1.2K views

31 Three prisms of crown glass each have angle of prism 9 and two prisms...

Physics
1.2K views

Q 6 In an industry an engineer is designing a dc shunt machine working as...

Basic Math
1.2K views

A single fair die is tossed. Find the odds in favor of rolling a number...

Calculus
1.2K views

K Find the derivative of the following function yain x 8 dy dx Type an...

Calculus
1.2K views

Sketch an angle 0 in standard position such that has the least possible positive measure...

Algebra
1.2K views

Let k an even natural number, k > 4. Solve in Z the equation:11 ......

Algebra
1.2K views

Prove using the definition of locus that ahorizontal hyperbola centered at the origin isdefined by...

Accounting
1.2K views

Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present,...

Accounting
1.2K views

Shahia Company bought a building for $382,000 cash and the land on which it was...

Accounting
1.2K views

Product A has revenue of $195,500, variable cost of goods sold of $114,000, variable selling...