Question

First in , first-out has been used for inventory valuation by the Bartlett Co. since it was organized in 2012. Using the data that follow, redetermine the net incomes for each year on the assumption of inventory valuation on the last in, first out basis:

uary 1, 2015, inventory? Answer Exercise 9-43 Income Differences-Fl FO vs. LIFO LO7 First-in, first-out has been used for inventory valuation by the Bartlett Co. since it was organized in 2012. Using the data that follow, redetermine the net incomes for each year on the assumption of inventory valuation on the last-in, first-out basis: 2012 2013 2014 2015 Reported net income-FIFO basis. Reported ending inventories-FIFO basis Ending inventories-LIFO basis $22,300 $42400 $61,350 $58.200 44,300 89900 112,000 125.000 35,100 65,300 80,000 113,000 Answer Exercise 9-44 Gross Margin Differences-FIFO vs. LIFO

Answer 1

Recalculation of Net Income Reported Net Income Ending Inventory as per FIFO + Ending Inventory as per LIFO 2012 2013 2014 2015 Reported Net Income as Per FIFO Reported ending inventories as per FIFO Reported ending inventories as per LIFO 22300 42400 61350 58200 a 44300 89900 112000 125000 35100 65300 80000 113000 C Recalculated Net Income as Per LIFO based 13100 29350 46200 d-a-b+c 17800 Ending Inventory Valuation