Solution-Explain why ford management chose to use lifo for

Explain why ford management chose to use lifo for certain of

Assignment Help Accounting Basics

Reference no: EM13972004

Analyzing Notes to Adjust Inventory from LIFO to FIFO - The following note was contained in a recent Ford Motor Company annual report:

Inventories at December 31 were as follows (dollars in millions)

	Current Year	Previous Year
Raw material, work in process, & supplies	3016	4360
Finished products	6493	6861
Total inventories at FIFO	9509	11221
Less LIFO Adjustment	-891	-1100
Total	8618	10121

1. What amount of ending inventory would have been reported in the current year if Ford had used only FIFO?

2. The cost of goods sold reported by Ford for the current year was $127,103 million. Determine the cost of goods sold that would have been reported if Ford had used only FIFO for both years.

3. Explain why Ford management chose to use LIFO for certain of its inventories.

Reference no: EM13972004

Questions Cloud

Why companies compete in monopolistic competitive market : Provide a two page paper and visual that explains how and why companies that compete in a monopolistic competitive market are successful. The paper must address the technical definition of monopolistic competition. A visual must show the monopolis..

Prepare general journal entries to record the transactions : Prepare general journal entries to record the above transactions and the depreciation journal entries required at the end of each reporting period up to June 2014

How did europe justify the enslavement of african : Look at the Dutch and British trading companies. What was their role in Indonesia and India? How did Europe justify the enslavement of Africans?

Issue debt at lower cost than the government of country : Assume that countries A and B are of similar size, that they have similar economies, and that the government debt levels of both countries are within reasonable limits. Explain why the government of country A is able to issue debt at a lower cost tha..

Explain why ford management chose to use lifo for certain of : What amount of ending inventory would have been reported in the current year if Ford had used only FIFO? The cost of goods sold reported by Ford for the current year was $127,103 million. Determine the cost of goods sold that would have been reported..

Project profiling besides budget size : Propose another attribute that might be used for project profiling besides budget size, location, And technical knowledge. Include the following in your answer:

Do these qualities figure into character''s personal history : Can you link these qualities, strengths and flaws to the themes of the film?

Compute the levered bheta : We have the Washington firm on which we have the following information. Its bheta unlevered is 3, its D/E is 4/1, and its tax rate is .3. Additionally we know that the default free rate is 5% and the stock market has returned 11 % over a long period ..

Compute the EPS and growth rate : We want to compute the EPS and growth rate of Ninni. It has 2 m shares outstanding and $80m of book value of equity. Ninni expects to sell $20m worth of sales and have EAT of $5m and keep 40% of its profit. Furthermore, it has $100m of assets. Its co..

User Account

All Pages

Explain why ford management chose to use lifo for certain of

Reference no: EM13972004

Reference no: EM13972004

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT