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: Inventories ($ in millions): Total inventories LIFO reserve 2024 $ 661 (107) $ 554 2023 $ 640 (63) $ 577 The company's income statement reported cost of goods sold of $3,240 million for the fiscal year ended December 31, 2024. Required: 1. Spando adjusts the LIFO reserve at the end of its fiscal year. Prepare the December 31, 2024, 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 2024 fiscal year?

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: Inventories ($ in millions): Total inventories LIFO reserve 2024 $ 661 (107) $ 554 2023 $ 640 (63) $ 577 The company's income statement reported cost of goods sold of $3,240 million for the fiscal year ended December 31, 2024. Required: 1. Spando adjusts the LIFO reserve at the end of its fiscal year. Prepare the December 31, 2024, 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 2024 fiscal year?

Name: Required 1 Required 2If Spando had used FIFO to value its inventories
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Description: Required 1 Required 2If Spando had used FIFO to value its inventories, what would cost of goods sold have been for the 2024 fiscal year?Note: Enter your answer in millions.Cost of goods soldmillion Spando Apparel uses the LIFO inventory method for e

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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