Question

Quest Inc. provided the following footnote in their annual report:
Inventories are stated at the lower of cost or market. The cost of inventories has been determined using last in first out (LIFO) method. Cost of goods sold under LIFO costing were $22.2 billion for 2011 and ending inventory under LIFO was $1.3 billion. Inventory in 2010 under LIFO costing was $1.2 billion. The LIFO Reserve account carried a balance of $0.8 billion in 2011 and $0.6 billion in 2010.

Compute the following:
1. FIFO ending inventory balance at year end 2010. (1.5 points)

2. FIFO ending inventory balance at year end 2011. (1.5 points)

3. FIFO cost of goods sold for year end 2011. (3 points)

4. Inventory turnover under LIFO costing for 2011. (3 points)

5. Inventory turnover under FIFO costing for 2011. (3 points)

Answer 1