Uses the FIFO inventory costing method

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Reference no: EM131219435

Eagle Resources, which uses the FIFO inventory costing method, has the following account balances at May 31, 2015, prior to releasing the financial statements for the year:

Merchandise Inventory, ending $ 13,000

Cost of Goods Sold 69,000

Sales Revenue 118,000

Eagle has determined that the current replacement cost (current market value) of the May 31, 2015, ending merchandise inventory is $12,800.

Requirements

1. Prepare any adjusting journal entry required from the information given.

2. What value would Eagle report on the balance sheet at May 31, 2015, for merchandise inventory.

Reference no: EM131219435

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