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2. Green Company merchandises a single inventory item. The company uses the periodic inventory system and has provided the fo

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Answer #1

A.

Increase in LIFO reserve = Cost of goods sold as per LIFO - Cost of goods sold as per FIFO

= 23,800-21,400

= $2,400

B.

Ending LIFO reserve = Beginning LIFO reserve + Increase in LIFO reserve

= 5,000+2,400

= $7,400

Kindly comment if you need further assistance.

Thanks‼!

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