Business, 06.11.2019 22:31 elizavlsc4
Corrs company began operations in 2016 and determined its ending inventory at cost and at lower-of-lifo cost-or-market at december 31, 2016, and december 31, 2017. this information is presented below:
cost
lower-of-cost-or-market
12/31/16 $356,000 $327,000
12/31/17 420,000 395,000
(a) prepare the journal entries required at december 31, 2016, and december 31, 2017, assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) is used.
(b) prepare journal entries required at december 31, 2016, and december 31, 2017, assuming that the inventory is recorded at market under a perpetual system (loss method is used).
(c) which of the two methods above provides the higher net income in each year? both, cogs method, or loss method?
Answers: 1
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