I have this accounting case due tomorrow and my group and I are really torn about the answer to this question. Under LIFO the inventory was $950,000. The company estimates under FIFO the inventory would cost $1,250,000. An appraisal value of replacement inventory says it is $1,200,00 (whereas the net realizable value of the inventory would be $1,300,000 prior to the 10% sales commission that the Company pays on all sales) The company would like to know what amount of inventory should be reflected on the company's balance sheet and whether this would have any impact on the company's other financial statements.
2007-11-22
12:41:01
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2 answers
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C G
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Corporations