LIFO Adjustments—New Vehicles – Ford Online Accounting Manual

Sales and Cost of Sales

LIFO ADJUSTMENTS—NEW VEHICLES	ASSET ACCOUNT
	6200

The difference between the Actual Cost (FIFO) and LIFO method of new vehicle valuation should be recorded in this account.

*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers

			Jrnl.	Dr.	Cr.

Reflect the difference between the Actual Cost (FIFO) method and the LIFO method of valuing the new vehicle adjustments			GJ
	LIFO Inventory Reserve—New Vehicles				1470
		Cost of Sales Adjustment—LIFO—New Vehicles		6200

NOTE: Accounts 1471-1479 are available if additional reserve accounts for new vehicles are required.

ANY DECISION TO ADOPT THE LIFO METHOD OF INVENTORY VALUATION AND ANY PROCEDURES ADOPTED FOR ACCOUNTING AND FINANCIAL REPORTING UNDER LIFO SHOULD BE MADE WITH THE ADVICE OF COMPETENT TAX COUNSEL.

NOTE:

For LIFO dealers, working capital must be calculated as follows:
“Current Assets plus LIFO Reserve minus Current Liabilities“