Richardson Company cans a variety of vegetable-type soups. Recently, the company decided to value its inventories using dollar-value LIFO pools. The clerk who accounts for inventories does not understand how to value the inventory pools using this new method, so, as a private consultant, you have been asked to teach him how this new method works. He has provided you with the following information about purchases made over a 6-year period. Date Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2025 010034 Ending Inventory (End-of-Yea Prices) $80,000 111,300 108,000 128,700 147,000 174.000 Price Index 100 105 120 130 140

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Richardson Company cans a variety of vegetable-type soups. Recently, the company decided to value its inventories using dollar-value
LIFO pools. The clerk who accounts for inventories does not understand how to value the inventory pools using this new method, so,
as a private consultant, you have been asked to teach him how this new method works.
He has provided you with the following information about purchases made over a 6-year period.
Date
Dec. 31, 2021
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2026
2021
2022
2023
2024
2025
Ending Inventory
(End-of-Yeat Prices)
2026
$
You have already explained to him how this inventory method is maintained, but he would feel better about it if you were to leave him
detailed instructions explaining how these calculations are done and why he needs to put all inventories at a base-year value.
(a) Compute the ending inventory for Richardson Company for 2021 through 2026 using c
$
$
$
$
$80,000
111,300
108,000
128,700
147,000
174,000
$
Price Index
Ending Inventory
100
105
120
130
140
145
value LIFO.
Transcribed Image Text:Richardson Company cans a variety of vegetable-type soups. Recently, the company decided to value its inventories using dollar-value LIFO pools. The clerk who accounts for inventories does not understand how to value the inventory pools using this new method, so, as a private consultant, you have been asked to teach him how this new method works. He has provided you with the following information about purchases made over a 6-year period. Date Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2025 Dec. 31, 2026 2021 2022 2023 2024 2025 Ending Inventory (End-of-Yeat Prices) 2026 $ You have already explained to him how this inventory method is maintained, but he would feel better about it if you were to leave him detailed instructions explaining how these calculations are done and why he needs to put all inventories at a base-year value. (a) Compute the ending inventory for Richardson Company for 2021 through 2026 using c $ $ $ $ $80,000 111,300 108,000 128,700 147,000 174,000 $ Price Index Ending Inventory 100 105 120 130 140 145 value LIFO.
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