The wheat company has used the lifo method for

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Chapter 3 / Exercise 3-24
Accounting Using Excel for Success
Reeve/Warren
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97. The Wheat Company has used the LIFO method for inventory valuation since the start of business 15 years ago. The current year ending inventory is $375,000. If the FIFO method of inventory had been used, the inventory would be $450,000. If Wheat Company had used the FIFO inventory method, income before income taxes would have been A. $75,000 higher over the 15 year period. B. $75,000 lower over the 15 year period. C. $75,000 higher in the current year. D. $75,000 lower in the current year.
98. The LIFO reserve disclosure is required because LIFO inventory costs are
99. The conversion of a LIFO inventory to approximate the inventory at FIFO is accomplished through application of which one of the following formulas?
100. The formula to convert the cost of goods sold LIFO to an estimate of the cost of goods sold FIFO is
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Accounting Using Excel for Success
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Chapter 3 / Exercise 3-24
Accounting Using Excel for Success
Reeve/Warren
Expert Verified
101. The Xano Company reported merchandise inventory at LIFO of $450,000 on the year-end financial statements. The company also reported a LIFO reserve of $34,000. An estimate of the inventory balance if the inventory had been reported using the FIFO assumption is A. $382,000.B. $416,000. C. $461,000. D. $484,000.
102. The Skone Corporation reported at the end of the year a LIFO reserve of $25,000. The beginning LIFO reserve was $20,000. The cost of goods sold was $197,500 under LIFO. The cost of goods sold under FIFO should be
103. The Mick Company reported a LIFO cost of goods sold for the year of $100,000. The LIFO reserve decreased by $30,000 for the year. An estimate of the cost of goods sold under FIFO is
104. The Johnson Corporation reported at the end of the year a LIFO reserve of $45,000. The beginning LIFO reserve was $60,000. The cost of goods sold was $260,000 under LIFO. The cost of goods sold under FIFO should be
105. As a firm liquidates old LIFO layers of inventory, the lower costs of the LIFO layers are matched against currentsales dollars resulting in a profit margin that is A. inflated. B. deflated. C. lower than normal. D. always the same as under FIFO.

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