Winnebago Industries, Inc. is a leading manufacturer of motor homes. Suppose Winnebago reported ending inventory at August 29, 2022, of $45,343,000 under the LIFO inventory method. In the notes to its financial statements, assume Winnebago reported a LIFO reserve of $31,400,000 at August 29, 2022. What would Winnebago Industries' ending inventory have been if it had used FIFO?
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Winnebago Industries, Inc. is a leading manufacturer of motor homes. Suppose Winnebago reported ending inventory at August 29, 2022, of $45,343,000 under the LIFO inventory method. In the notes to its financial statements, assume Winnebago reported a LIFO reserve of $31,400,000 at August 29, 2022.
What would Winnebago Industries' ending inventory have been if it had used FIFO?
2022 ending inventory assuming FIFO |
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- This problem consists of TWO parts Part One: Galaxy Corporation has a beginning inventory in 2023 of $1,400,000 and an ending inventory of $1,694,000. The price level has increased from 100 at the beginning of 2023 to 110 at the end of 2023. Calculate the ending inventory value using the dollar value LIFO method. Part Two: At the end of 2024, Galaxy's inventory is $1,886,000 in terms of a price level of 115 which exists at the end of 2024. Calculate the inventory value at the end of 2024 using the dollar value LIFO method. Problem Five (4 points) Maxwell Corporation provides you with the following inventory related to its inventory at December 31, 2023: Inventory Original Cost Replacement Net Realizable Net Realizable Appropriate Item per Unit Cost Value Value Less Inventory Value A $.65 $.45 B.45.40 Normal Profit at 12/31/23 C.70.75 D.75.65 E.90.85 The normal selling price is $1.00 per unit for All items. Disposal costs amount to 10% of the selling price and a normal profit is 30% of…Sarasota Enterprises Ltd.'s records reported an inventory cost of $ 56, 500 and a net realizable value of $ 52, 100 at December 31, 2021 At December 31, 2022, the records indicated a cost of $ 70, 700 and a net realizable value of $ 60,500. All opening inventory had been sold during the year. (a) Your answer is correct. Assuming that Sarasota Enterprises uses a perpetual inventory system, prepare the December 31, 2022 entry that is needed under the direct method and the indirect method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Assume that at December 31, 2023, the records show inventory with a cost of $ 60, 900 and a net realizable value of $ 62,800. Prepare the December 31, 2023 entry that is needed under the direct method and the indirect method. (Credit account titles are…Sunland Company had the following inventory transactions occur during 2022: Units Cost/unit Feb. 1, 2022 Purchase 104 $43 Mar. 14, 2022 Purchase 179 $45 May 1, 2022 Purchase 127 $47 The company sold 294 units at $60 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, and operating expenses of $1728, what is the company’s after-tax income using LIFO? $2007.60 $1699.60 $2428.00 $2868.00
- s Mercury Company has only one inventory pool. On December 31, 2024, Mercury adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $210,000. Inventory data are as follows: Year 2025 2026 2027 Date Required: Compute the inventory at December 31, 2025, 2026, and 2027, using the dollar-value LIFO method. Note: Round "Year end cost index" to 2 decimal places. 12/31/2024 12/31/2025 12/31/2026 Ending Inventory at Ending Inventory at Year-End Costs Base Year Costs $ 252,000 333,500 336,000 12/31/2027 $ 240,000 290,000 280,000 Inventory Layers Converted to Base Year Cost Inventory at Year-End Cost Year-End Cost Index = = = = Ending Inventory at Base Year Cost Base Base 2025 Base 2025 2026 Base 2025 2026 2027 Inventory Layers Converted to Cost Ending Inventory at Base Year Cost Year-End Cost Index = Inventory Layers Converted to Cost Inventory DVL Cost $ $ $ $ 0 0 0 0Sheffield Company began operations on January 1, 2018, and uses the average-cost method of pricing inventory. Management is contemplating a change in inventory methods for 2021. The following information is available for the years 2018–2020. Net Income Computed Using Average-Cost Method FIFO Method LIFO Method 2018 $16,010 $19,020 $12,120 2019 18,070 21,180 13,950 2020 20,200 25,010 17,110 (a) Prepare the journal entry necessary to record a change from the average cost method to the FIFO method in 2021. (b) Determine net income to be reported for 2018, 2019, and 2020, after giving effect to the change in accounting principle. (c) Assume Sheffield Company used the LIFO method instead of the average cost method during the years 2018–2020. In 2021, Sheffield changed to the FIFO method. Prepare the journal entry necessary to record the change in principle.Sampress, Inc., reported inventory in the 2020 year-end balance sheet, using the average cost method, as $342,000. In 2021, the company decided to change its inventory method to FIFO. If the company had used the FIFO method in 2020, ending inventory would have been $367,000. What adjustment would Sampress make for this change in inventory method?