4. Hightop Co. has only one inventory pool. On December 31, 2017, Hightop adopted the dollar, value LIFO inventory method. The inventory value on the adoption date was $6,000,000. Inventory data for 2018 through 2020 are as follows: Ending inventory at Ending inventory at base year costs Date current costs 12/31/18 $7,176,000 12/31/19 $7,236,000 12/31/20 $8,395,000 $6,900,000 $6,700,000 $7,300,000 4a. What is Hightop's ending inventory value for 2018, 2019 and 2020 under dollar-value (DV) LIFO? 2018 2019 2020 Ending inventory under DV LIFO 4b. What is the adjusting journal entry at 12/31/2019 that Hightop would record to adjust inventory to DV LIFO? Debit Credit Date Account
4. Hightop Co. has only one inventory pool. On December 31, 2017, Hightop adopted the dollar, value LIFO inventory method. The inventory value on the adoption date was $6,000,000. Inventory data for 2018 through 2020 are as follows: Ending inventory at Ending inventory at base year costs Date current costs 12/31/18 $7,176,000 12/31/19 $7,236,000 12/31/20 $8,395,000 $6,900,000 $6,700,000 $7,300,000 4a. What is Hightop's ending inventory value for 2018, 2019 and 2020 under dollar-value (DV) LIFO? 2018 2019 2020 Ending inventory under DV LIFO 4b. What is the adjusting journal entry at 12/31/2019 that Hightop would record to adjust inventory to DV LIFO? Debit Credit Date Account
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:4. Hightop Co. has only one inventory pool. On December 31, 2017, Hightop adopted the dollar,
value LIFO inventory method. The inventory value on the adoption date was $6,000,000.
Inventory data for 2018 through 2020 are as follows:
Ending inventory at
Ending inventory at
base year costs
Date
current costs
12/31/18 $7,176,000
12/31/19 $7,236,000
12/31/20 $8,395,000
$6,900,000
$6,700,000
$7,300,000
4a. What is Hightop's ending inventory value for 2018, 2019 and 2020 under dollar-value (DV)
LIFO?
2018
2019
2020
Ending inventory under
DV LIFO
4b. What is the adjusting journal entry at 12/31/2019 that Hightop would record to adjust inventory
to DV LIFO?
Debit
Credit
Date
Account
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