If steelcase had used fifo to value its inventories what

Assignment Help Accounting Basics

Reference no: EM13589620

Steelcase 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:

Inventories ($ in millions):

	February 25, 2011			February 26, 2010
Raw materials	$	72		$	54.3
Work-in-process		15.6			13.6
Finished goods		87.6			70.5

		175.2			138.4
LIFO reserve		(22.6	)		(24.7	)

	$	152.6		$	113.7

The company's income statement reported cost of goods sold of $1,787.3 million for the fiscal year ended February 25, 2011.

Required:
1.	Steelcase adjusts the LIFO reserve at the end of its fiscal year. Prepare the February 25, 2011, adjusting entry to make the cost of goods sold adjustment. (Enter your answers in millions, (i.e., 5,500,000 should be entered as 5.5). Round your answers to 1 decimal place. If no entry is required for a transaction, select "No journal entry required" in the first account field.)

2.	If Steelcase had used FIFO to value its inventories, what would cost of goods sold have been for the 2011 fiscal year? (Enter your answer in millions rounded to 1 decimal place.)

3.	Since its inception, what is the amount of income tax the company has saved by using LIFO instead of FIFO for tax purposes? Assume an effective income tax rate of 35%. (Enter your answer in millions rounded to 3 decimal places.)

Reference no: EM13589620

Questions Cloud

Prepare a statement of cash flows for 2014 using the : prepare a statement of cash flows for 2014 using the indirect method in the operating activities section. use the minus

Armtrong industries has a contribution margin of 300000 : armtrong industries has a contribution margin of 300000 and a contribution margin ratio of 30. how much are total

What will be the effect on budget tax services profit if it : budget tax service inc. prepares tax returns for small businesses. the cost of preparing 800 tax returns in the prior

What is the rate constant for the reverse reaction at the : the rate constant for the elementary reaction is 7.1 109m2middots at 25degc.2 nog o2gnbsprarr 2 no2gwhat is the rate

If steelcase had used fifo to value its inventories what : steelcase inc. is the global leader in providing furniture for office environments. the company uses the lifo inventory

Write a summary of the article including an overview of the : select one published article from a peer-reviewed journal which addresses a current issue in volunteer rewards and

A company has 200000 par value 10 bonds outstanding : a company has 200000 par value 10 bonds outstanding. prepare the companys journal entry to retire the bonds at the date

Red sox company has the following sales of land and cash : red sox company has the following sales of land and cash collectionsin 2010 there was the sale of bux land for 3000000

Calculate the ph of a solution prepared by dissolving 2000 : question calculate the ph of a solution prepared by dissolving 200.0 mg of baoh2 171.3 gmol to 100.0 ml of solution.

User Account

All Pages