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The Company used the LIFO method to value inventories of $53.2 million at December 30, 2017 and $66.2 million at December 31, 2016. During fiscal 2017, a reduction in inventory quantities resulted in a liquidation of applicable LIFO inventory quantities carried at lower costs in prior years. This LIFO liquidation decreased cost of goods sold by $6.0 million. If the FIFO method had been used, inventories would have been $16.4 million and $22.4 million higher than reported at December 30, 2017 and December 31, 2016, respectively. 2. Calculate what beginning inventory and ending inventory would have been for the year ended December 31, 2017, if Wolverine had used FIFO for all of its inventories.

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anthougo

The beginning inventory and ending inventory for the year ended December 31, 2017, if Wolverine had used FIFO instead of LIFO, would have been $88.6 million and $69.4 million, respectively.

What is the difference between the FIFO and LIFO methods?

The FIFO (First-in, First-Out) Method assumes that inventories sold are the first to be bought or produced.

It is unlike LIFO (Last-in- First-Out), which assumes that inventories sold are the last bought or produced.

Data and Calculations:

                                       LIFO Method         FIFO Method

Ending inventory:

December 30, 2017      $53.2 million         $69.4 million ($53.2 + $16.4)

December 30, 2016     $66.2 million         $88.6 million ($66.2 + $22.4)

Thus, the beginning inventory and ending inventory for the year ended December 31, 2017, if Wolverine had used FIFO instead of LIFO, would have been $88.6 million and $69.4 million, respectively.

Learn more about the inventory methods at https://brainly.com/question/24938626

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