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Cost of goods sold was $22 billion under FIFO costing and the inventory value under FIFO costing was $2.1 billion. The LIFO Reserve for year-end 2018 was $0.6 billion and at year-end 2019 it had increased to $0.8 billion. What is the LIFO inventory value at year-end 2014?

1 Answer

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Answer:

the  LIFO inventory value at 2014 year end is $1.3 billion

Explanation:

The computation of the LIFO inventory value at 2014 year end is as follows

LIFO inventory value at year-end 2014 is

= FIFO inventory - LIFO reserve

= $2.1 billion - $0.8 billion

= $1.3 billion

Hence, the  LIFO inventory value at 2014 year end is $1.3 billion

The same is to be determined by applying the above formula

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Mr. Alec Watsica V
15.5k 3 10 26
answered 10 months ago