Hello Folks, CFAI Text (FSA), page # 341, Question# 4©. In that any one has idea for part ii, how can we get the LIFO Inventory using inflation rate, I can not get the answer given in the book(53675). If anyone can explain this answer in detail, I would really appericiate it. -Thanks
I don’t have the exact question, but maybe these will help… inflation rate = change in LIFO reserve / Beg. Inventory FIFO LIFO COGS = FIFO COGS + (Beg. Inv FIFO x inflation rate) Give me the exact question, and maybe I can help more.
Search for this in prior postings (esp by gdiddy) and you will find the exact same question solved in its entirety. (and in great detail).
Here’s the thread you’re looking for: http://www.analystforum.com/phorums/read.php?11,626318,626318