Davidson Company reports using LIFO inventory costing. The following information is taken from their inventory footnote. All numbers are in thousands. Raw materials Work-in- process Finished goods Total Adjust to LIFO cost Lower of cost or market adjustment Inventory 2022 $ 20,155 70,348 2021 26,245 $ 28,283 $ 19,169 84,020 116,748 131,472 (22,693) (41,697) 94,055 $ 89,775 Had Davidson Corporation reported under FIFO inventory costing, their reported cost of sales in 2022 would have been: a. Higher by $19,004 b. Higher by $22,693 c. Lower by $19,004 d. Lower by $22.693 e. None of the above.
Davidson Company reports using LIFO inventory costing. The following information is taken from their inventory footnote. All numbers are in thousands. Raw materials Work-in- process Finished goods Total Adjust to LIFO cost Lower of cost or market adjustment Inventory 2022 $ 20,155 70,348 2021 26,245 $ 28,283 $ 19,169 84,020 116,748 131,472 (22,693) (41,697) 94,055 $ 89,775 Had Davidson Corporation reported under FIFO inventory costing, their reported cost of sales in 2022 would have been: a. Higher by $19,004 b. Higher by $22,693 c. Lower by $19,004 d. Lower by $22.693 e. None of the above.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 7RE: Uncle Butchs Hunting Supply Shop reports the following information related to inventory: Calculate...
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