Solution-If steel case had used fifo to value its

If steel case had used fifo to value its inventories

Reference no: EM131000686

Steel case Inc. is the global leader in providing furniture for office environments. The company 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:

1361_254-B-A-V-I (710).png

The company's income statement reported cost of goods sold of $2,236.7 million for the fiscal year ended February 27, 2009.

Required:

1. Steel case adjusts the LIFO reserve at the end of its fiscal year. Prepare the February 27, 2009, adjusting entry to make the cost of goods sold adjustment.

2. If Steel case had used FIFO to value its inventories, what would cost of goods sold have been for the 2009 fiscal year?

Reference no: EM131000686

Questions Cloud

T test to compare the population means : Carry out a two-sample t test to compare the population means. What assumptions are required for this to be a valid test? At the α = 0.05 signi?cance level, what does this result imply about the null hypothesis?

How to create an equation to predict the number : Explain to Bobby how to create an equation to predict the number of blackberries he can expect based on the number of square feet he maintains

Determine the cost of goods sold for 2011 : Determine the cost of goods sold for 2011 using the FIFO method. [Hint: Determine the cost per unit of 2011 purchases.]

Euclidean algorithm : For each of the following pairs of numbers, use the Euclidean algorithm to compute gcd(a, b) and to find integers x, y such that ax + by = gcd(a, b)

If steel case had used fifo to value its inventories : If Steel case had used FIFO to value its inventories, what would cost of goods sold have been for the 2009 fiscal year?

Calculate the ground-sate energy of an electron : An electron in a wire can be considered as if in one-dimensional infinite potential well. Consider L=0.1 mm long wire; Calculate the ground-sate energy of an electron in such a wire.

Drafts and documents : Patterns - As you flip through the pages of your notes, drafts and documents, what patterns do you notice? What seems to happen frequently or stand out to you? For instance, you might notice that you always begin your drafts the same way

One''s personal or political point-of-view can greatly : One's personal or political point-of-view can greatly influence the "facts" that they deem most relevant or reliable when determining an answer to a question. In practice, these alternative perspectives and ideologies then result in relatively sound,..

How discrimination affects efficiency within organisations : Discuss how discrimination affects efficiency within organisations, with special emphasis on LGBT issues. Also discuss why we might observe discrimination, given the efficiency implications highlighted in the literature.

User Account

All Pages

If steel case had used fifo to value its inventories

Reference no: EM131000686

Reference no: EM131000686

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

On march 31 phoenix inc paid melanie publishing company

What is the proper bank balance arrived

Prepare a new income statement for the year

On january 1 vanessa corporation had 60900 shares of no-par

The inventory balances of tog designs

What would be recorded in the common stock account on the

Discuss the primary reason for the restatement and the

What are some of the challenges facing the accounting

Depreciation on factory equipment b depreciation on

The company can purchase the 1000 units externally for

Hartford research issues bonds dated january 1 2013 that

Show the investment account.- parent company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT