Problem #: Inventory Review Problem:
A Ironside Co reported the following data for its purchases and sales of inventory during below
on the left. On the right, the company reports the effect of each transaction on the inventory ledger
account:
Other notes:
LIFO reserve has a credit balance of $ the beginning of the period
The estimated selling price was $ at year end with selling costs of $ both per unit. The
expected gross profit of the inventory is $ a unit. The current replacement cost of inventory is
$
Provide COGS assuming a LIFO perpetual cost method and a FIFO perpetual cost method
youre solving for the amounts because the reduction to inventory is the same as COGS
Provide the adjustment required to LIFO reserve if the company uses FIFO for its internal record
keeping and reports its financial results in LIFO.
Provide the test required to determine the lower of cost or marketNRV for both LIFO and FIFO
methods. Is a writedown required? note: you're assessing the entire inventory for writedown Please Provide Step by Step Instruction as well as appropriate solutions for each queston point!!
