thelostone
Jul 9, 2007, 10:28 AM
Please I need help with this question. I do not understand how to compute the value.
Jupiter Enterprises reports net sales revenue for 20X6 to be $595,000, January 1, 20X6, inventory at $102,000, net
purchases at $370,000, and operating expenses at $155,000. Jupiter Enterprises currently values inventory using LIFO. Using the LIFO method, December 31, 20X6, inventory is valued at $86,000. Jupiter is considering changing to the FIFO inventory method. Under FIFO, December 31, 20X6, inventory would be valued at $105,000.
Jupiter Enterprises reports net sales revenue for 20X6 to be $595,000, January 1, 20X6, inventory at $102,000, net
purchases at $370,000, and operating expenses at $155,000. Jupiter Enterprises currently values inventory using LIFO. Using the LIFO method, December 31, 20X6, inventory is valued at $86,000. Jupiter is considering changing to the FIFO inventory method. Under FIFO, December 31, 20X6, inventory would be valued at $105,000.