Carmen Inc., producers of high tech boating equipment, disclosed the following information in its 2009 annual report to shareholders:
Inventories are valued at the lower of cost or net realizable value with cost determined by the last-in, first-out (LIFO) method for inventories.
Inventories at May 31 were as follows:
How does the supplemental LIFO information indicating what the value of ending inventory would have been if measured using FIFO improve the quality of financial reporting by Carmen?

Question

Quizplus · Accepted Answer

The Answer of Carmen Inc., producers of high tech boating equipment, disclosed the following information in its 2009 annual report to shareholders:
Inventories are valued at the lower of cost or net realizable value with cost determined by the last-in, first-out (LIFO) method for inventories.
Inventories at May 31 were as follows:
How does the supplemental LIFO information indicating what the value of ending inventory would have been if measured using FIFO improve the quality of financial reporting by Carmen?