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Inventory Valuation
Inventory Valuation
Medium
Baxter Supply uses LIFO and reports the following: ending LIFO inventory of $28 million, LIFO reserve of $9 million, and LIFO COGS of $62 million. To convert Baxter's financial statements to a FIFO basis, an analyst should report COGS of:
A
$53 million (if LIFO reserve increased by $9M during the year)
B
$71 million
C
$62 million (no adjustment needed)
D
$37 million
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Tags
#lifo-to-fifo-conversion
#lifo-reserve
#inventory-valuation
#cogs-adjustment
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