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 $22.40 billion under FIFO costing and the inventory value under FIFO costing was $2.18 billion. The LIFO Reserve for year-end 2018 was $0.64 billion and at year-end 2019 it had increased to $0.84 billion. How much is the 2019 LIFO cost of goods sold?

Answer 1

$1.34 billion

Step-by-step explanation:

The calculation of LIFO cost of goods sold is shown below:-

Cost of goods sold FIFO = $22.40 billion

Inventory FIFO =$2.18 billion

Beginning reserve LIFO = $0.64 billion

Ending reserve LIFO = $0.84 billion

Ending inventory FIFO = Ending inventory LIFO + Ending reserve LIFO

Ending inventory LIFO = $2.18 billion - $0.84 billion

= $1.34 billion