Spando Apparel Uses the LIFO Inventory Method for External Reporting

question 39

Essay

Spando Apparel uses the LIFO inventory method for external reporting and for income tax purposes but maintains its internal records using FIFO. The following disclosure note was included in a recent annual report:

The company's income statement reported cost of goods sold of $3,120 million for the fiscal year ended December 31, 2018.
Required:
1. Spando adjusts the LIFO reserve at the end of its fiscal year. Prepare the December 31, 2018, adjusting entry to record the cost of goods sold adjustment.
2. If Spando had used FIFO to value its inventories, what would cost of goods sold have been for the 2018 fiscal year?

Understand the importance and principles of maintaining a safe environment by following aseptic techniques.

Know the correct sequence of applying sterile attire.

Recognize the concept of creating and maintaining a sterile field for aseptic procedures.

Identify appropriate personal protective equipment based on standard precautions for specific medical procedures.

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Definitions:

Least Elastic Supply

A situation in the market where the supply of a product or service is least responsive to changes in price.

Midpoint Method

A technique used in economics to calculate the elasticity of demand or supply by averaging the start and end points of a range.

Drug Interdiction

The policy or practice of preventing the importation, trafficking, and use of illegal drugs by enforcement or military means.

Supply Curve

A visual chart illustrating the connection between a product's price and the amount of the product that sellers are ready to manufacture and offer for sale.