Explain the meaning of the increase or decrease in the lifo, Ask an Expert

Accounting

Walgreen Co's 2010 annual report includes the following in the note that summarizes its accounting policies:

Inventories are valued on a lower of last-in, first out (LIFO) cost or market basis. At August 31, 2010 and 2009, inventories would have been greater by $1,379 million and $1,239 million, respectively, if they had been valued on a lower of first-in, first out (FIFO) cost or market basis. Inventory includes product costs, inbound freight, warehousing costs and vendor allowances.

What inventory costing method does Walgreen Co. use?

What is the amount of the LIFO reserve at the end of each of the two years?

Explain the meaning of the increase or decrease in the LIFO reserve during the 2010. What does this tell you about inventory costs for the company? Are they rising or falling? Explain.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9279555

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - douglas bonds mature in 10 years and have an

Question - Douglas bonds mature in 10 years and have an annual coupon rate of 10.5 percent with semiannual payments. The $1,000 par value bond currently trades at $1,105 in the market. Compute the annual yield to maturit ...

Question - a machine is purchased january 1 at a cost of

Question - A machine is purchased January 1 at a cost of $56,290. It is expected to produce 129,000 units and have a salvage value of $3,400 at the end of its useful life. Units produced are as follows: Year 1 10,400 Yea ...

Question 1 texas co expects sales of 20000 units of s1 in

Question: 1. Texas Co. expects sales of 20,000 units of S1 in September. DX1 is its most popular high performance desktop model. The sales manager is confident that, between October and December, the total sales will hav ...

Question - make a statement of comprehensive income from

Question - Make a statement of comprehensive income from the following data? Sales revenue $40,000,000 General and administrative expenses 8,200,000 Deferred revenue 100,000 Interest expense 65,000 Selling expenses 1,800 ...

Question in this case management is presented with several

Question: In this case, management is presented with several decision options. For this assignment, you are required to provide a two to three single-spaced written memo evaluating options and providing recommendations. ...

Question - on january 1 park corporation and strand

Question - On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Park Strand Current assets $ 115,000 $ 22,150 Noncurrent assets 93,000 44,100 Total assets $ 208,000 $ 66,250 Curr ...

Question in each of the following scenarios prepare journal

Question: In each of the following scenarios, prepare journal entries, as necessary, or give proper accounting recognition. For each, tell why you made an entry or accounting recognition or why you did not. 1. Identify t ...

Question - the following information relates to rem corps

Question - The following information relates to Rem Corp's accounts receivable for 2015: Accounts receivable, 1/1/15 $ 500,000 Credit sales for 2015 2,000,000 Sales returns for 2015 60,000 Accounts written off during 201 ...

Question - explain why the purchase of supplies is usually

Question - Explain why the purchase of supplies is usually recorded in the asset account rather than in an expense account. If supplies were expensed when purchased, which account should be debited and which credited at ...

Question - the community college instructor has asked for

Question - The community college instructor has asked for your help again. He or she wants you to personally create a document he or she could give to students. Write an 875 to 1,050-word paper in which you: Analyze the ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert