Question

QV-TV, Inc. provided the following items in its notes to the financial statements for the year-end 2019:

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?

Answer 1

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

Step-by-step explanation:

The calculation 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

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

The same is to be calculated by applying the given formula