[sgtfuzzyboots]

If anyone can help me on this I would be very grateful, I have been literally working on this for HOURS without any result :(

The problem involves you doing FIFO to/from LIFO, and it gives the following numbers:

Year 1:
Lifo ending inventory: 50
Fifo net income: 200
Lifo net income: 170

Year 2:
Lifo ending inventory: 40
Fifo net income: 200
Lifo net income: 180

And the questions is: What is Fifo ending inventory?

I understand how to get the first year, but I have no idea how to figure out year 2. I actually have the answer for year 2 (it's 90), since it was included with our homework, but I have no idea HOW to get to the answer. Our professor explained it in class, but I had a hard time following her.

Thanks to anyone who can help!

[sgtfuzzyboots]

I don't know if this will help or not, but this is the way I was setting up the problems:


Year 1 Fifo Lifo
Beginning Inventory 0 0
Ending Inventory ? 50

Net 200 170

After I did that I looked at the difference of the net (30) and so I knew that the ending inventory has to be either 80 (50+30) or 20 (50-30). Since the Fifo net income is higher I knew I had to add the 30 to the 50.

The problem with the second year is that the Beginning Inventories are now 80 (for Fifo) and 50 (for lifo) and I get all confused on how I am supposed to get 90 out of it.

I wasn't sure if it was against the rules to double post, but I thought this might help and I didn't see a way to edit my original post...