Converting ending inventory from fifo into dollar-value lifo

Assignment Help Accounting Basics

Reference no: EM13824474

Problem-

Eastshore Corporation sells three main products regularly. The products form one pool for inventor/ purposes, The company used FIFO throughout 2007 for all purposes. After 2007, FIFO continued to be used for internal management and accounting purposes; however, at the beginning of 2008, dollar-value LIFO was adopted For income tax and external reporting purposes. The following data (for the three products combined) were taken from the records for the three years following the adoption of LIFO:

FIFO Basis Accounts
2007	Units	Cost	Total
Ending inventory	2,000	$3.00	$6,000
2008:
Purchases	7,000	$3.30	$23,100
Sales	6,000
Ending inventory	3,000	S3.30	$ 9,900
2009:
Purchases	10,000	$3.60	$36,000
Sales	7,000
Ending inventory	6,000	$3.60	$21,600
2010
Purchases	5,000	$3.75	$18,750
Sales	7,000
Ending inventory	4,000	$3.75	$15,000

Required:

Convert the ending inventory at FIFO to a dollar-value LIFO basis for 2008, 2009, and 2010.

Additional information-

The problem relates to Accounting and it discusses about converting ending inventory from FIFO into dollar-value LIFO method.

Reference no: EM13824474

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