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Exercise 8-18 Supplemental LIFO disclosures; LIFO reserve; AEP Industries [LO8-6) AEP Industries Inc. is a...

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Exercise 8-18 Supplemental LIFO disclosures; LIFO reserve; AEP Industries [LO8-6) AEP Industries Inc. is a leading manufacturer of plastic packing films. The company uses the LIFO inventory method for external reporting but maintains its internal records using FIFO. The following disclosure note was included in a recent quarterly report: 4. Inventories (in part) Inventories are comprised of the following ($ in thousands) October January 31, 2016 31, 2015 Raw materials Finished goods Supplies $42,881 47,593 66,484 5,280 119,357 71,547 5,240 119,668 Less: LIFO reserve (13,655) (18,093) Inventories (under LIFO) $106,013 $101,264 The company's income statements reported cost of goods sold of $209,826 thousand for the quarter ended January 31, 2016 Required 1. Assume that AEP adjusts the LIFO reserve at the end of its quarter. Prepare the January 31, 2016, adjusting entry to record the cost of goods sold adjustment. 2. If AEP had used FIFO to value its inventories, what would cost of goods sold have been for the quarter ended January 31, 2016? Complete this question by entering your answers in the tabs below

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