FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Determine ending inventory using dollar-value LIFO. Assume that the December 2, 2025, purchase cost is the current cost of the inventory.
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- Presented below is information related to Splish Company. December 31, 2022 December 31, 2023 December 31, 2024 December 31, 2025 December 31, 2026 December 31, 2027 2022 2023 Date 2024 2025 2026 2027 $ $ $ $ $ Ending Inventory (End-of-Year Prices) $ $83,600 117,832 Compute the ending inventory for Splish Company for 2022 through 2027 using the dollar-value LIFO method. 116,501 131,709 157,765 190,224 Ending Inventory 83,600 207,802 Price Index 100 100 104 119 129 139 144arrow_forward1. If ending inventory on December 31, 2019, is overstated, then, a) cost of goods sold for the year ended December 31, 2020, will be understated. b) gross profit for the year ended December 31, 2019, will be understated. c) gross profit for the year ended December 31, 2020, will be understated. d) cost of goods sold for the year ended December 31, 2019, will be overstated.arrow_forwardOn January 1, 2019, Lexor Company adopted the dollar-value-LIFO method of inventory costing. Lexor's ending inventory records appear as follows: Year Current cost Index 2019 $ 42,000 100 (1.00) 2020 58,000 110 (1.10) 2021 60,100 120 (1.20) 2022 68,200 130 (1.30) Compute the ending inventory for the years 2019, 2020, 2021, and 2022, using the dollar-value LIFO method. Round to the nearest dollar. Show all work. You can use the previous homework template that you used forarrow_forward
- Sunland Company adopted the dollar-value LIFO method of inventory valuation on December 31, 2019. Its inventory at that date was $1109000 and the relevant price index was 100. Information regarding inventory for subsequent years is as follows: Date December 31, 2020 December 31, 2021 December 31, 2022 Inventory at Current Prices $1285000 1460000 1625000 Current Price Index 106 124 129 What is the cost of the ending inventory at December 31, 2021 under dollar-value LIFO?arrow_forwardPresented below is information related to Kingbird, Inc. End-of-Year Inventory Price Date (End-of-Year Prices) Index December 31, 2017 $ 1,200,000 100 December 31, 2018 1,522,500 105 December 31, 2019 1,562,000 110 December 31, 2020 1,813,500 117 Compute the ending inventory for Kingbird, Inc. for 2017 through 2020 using the dollar-value LIFO method. Ending Inventory 2017 2018 2019 2020 $ %24 %24arrow_forwardPatel Company adopted the dollar-value inventory method on 12/31 / 20 . Inventory data are as follows: Inventory Price Year at Yr End Index 2020 5,785 1.00 2021 9,2501.23 202211,225 1.36 20238,575 1.25 2024 16,425 1.40 Instructions : Calculate the inventory for must show your work . 20, 2021, 2022, 20 and 2024.arrow_forward
- A company adopted dollar - value LIFO on January 1, 2024, when the inventory value was $367,000 and the cost index was 1.35. On December 31, 2024, the inventory was valued at year-end cost of $402,000 and the cost index was 1.40. The company would report a LIFO inventory of: Note: Round your final answer to the nearest whole dollar amount.arrow_forwardPresented below is information related to Sheffield Company. December 31, 2022 December 31, 2023 December 31, 2024 December 31, 2025 December 31, 2026 December 31, 2027 2022 2023 2024 2025 Date 2026 2027 Ending Inventory (End-of-Year Prices) $ $82,100 117,104 114,835 129,516 154,985 183,168 Compute the ending inventory for Sheffield Company for 2022 through 2027 using the dollar-value LIFO method. Price Index Ending Inventory 100 104 119 129 139 144arrow_forwardBoulder, Incorporated is computing its inventory at December 31, 2022. The following information relates to the five major inventory items regularly stocked for resale: Item A B C D E Item A B Required: Using the lower of cost or net realizable value, compute the total valuation for each inventory item at December 31 2022, and the total inventory valuation. C Ending Inventory, Quantity on December 31, 2022 Unit Hand 140 190 45 340 740 D E Total Inventory Valuation $ Net Realizable Value (Market) at Cost when Acquired (FIFO) December 31, 2022 $44 $39 $54 $56 $104 $84 $66 $16 0 $64 $19arrow_forward
- JBD, Inc. has the following information pertaining to it 2025 ending inventory. Requirements: Calculate the value of ending inventory using the following methods: LCM for each individual inventory item LCM for aggregated inventory. Record any necessary journal entries for each of the above methods, assuming the amount is material. Explain the purpose of applying the LCM rule to inventory Item Quantity Cost per Each Market Cost per Each Records Market LCM Each LCM Total R55 300 10 7.5 S49 150 15 12 T21 350 8 6 E33 600 33 35 Date Account Debit Creditarrow_forwardKingbird Company has used the dollar-value LIFO method for inventory cost determination for many years. The following data were extracted from Kingbird's records. Price Ending Inventory Date Index at Base Prices Ending Inventory at Dollar-Value LIFO December 31, 2025 105 $92,700 $86,600 December 31, 2026 ? 97,700 92,150 Calculate the index used for 2026 that yielded the above results. Index used for 2026arrow_forwards Mercury Company has only one inventory pool. On December 31, 2024, Mercury adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $210,000. Inventory data are as follows: Year 2025 2026 2027 Date Required: Compute the inventory at December 31, 2025, 2026, and 2027, using the dollar-value LIFO method. Note: Round "Year end cost index" to 2 decimal places. 12/31/2024 12/31/2025 12/31/2026 Ending Inventory at Ending Inventory at Year-End Costs Base Year Costs $ 252,000 333,500 336,000 12/31/2027 $ 240,000 290,000 280,000 Inventory Layers Converted to Base Year Cost Inventory at Year-End Cost Year-End Cost Index = = = = Ending Inventory at Base Year Cost Base Base 2025 Base 2025 2026 Base 2025 2026 2027 Inventory Layers Converted to Cost Ending Inventory at Base Year Cost Year-End Cost Index = Inventory Layers Converted to Cost Inventory DVL Cost $ $ $ $ 0 0 0 0arrow_forward
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