On Jan. 1. 2020. Omni-Night Company adopted Dollar Value LIFO. Below is the company's Dollar Value LIFO chart for ending inventory as of Dec. 31. 2020. Layer 1/1/2020 12/31/2020 Total Inventory at Base Costs 80,000 50.000 130,000 Price Index 1.0 1.05 DV LIFO Inventory Value 80,000 52.500 132,500 On Dec. 31.2021. Omni-Night had ending inventory at current (FIFO) costs of $165,000 and a price index for 2021 of 1.10. Answer the following two questions. On Dec. 31, 2021, what is Omni-Night's ending inventory at base year costs? 150,000 On Dec. 31, 2021, what is Omni-Night's ending Dollar Value LIFO inventory balance? 132,500
On Jan. 1. 2020. Omni-Night Company adopted Dollar Value LIFO. Below is the company's Dollar Value LIFO chart for ending inventory as of Dec. 31. 2020. Layer 1/1/2020 12/31/2020 Total Inventory at Base Costs 80,000 50.000 130,000 Price Index 1.0 1.05 DV LIFO Inventory Value 80,000 52.500 132,500 On Dec. 31.2021. Omni-Night had ending inventory at current (FIFO) costs of $165,000 and a price index for 2021 of 1.10. Answer the following two questions. On Dec. 31, 2021, what is Omni-Night's ending inventory at base year costs? 150,000 On Dec. 31, 2021, what is Omni-Night's ending Dollar Value LIFO inventory balance? 132,500
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 12P: Dollar-Value LIFO Kwestel Company adopted the dollar-value LIFO method for inventory valuation at...
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Transcribed Image Text:On Jan. 1. 2020, Omni-Night Company adopted Dollar Value LIFO. Below is the company's Dollar Value
LIFO chart for ending inventory as of Dec. 31, 2020.
Layer
1/1/2020
12/31/2020
Total
Inventory at Base
Costs
80,000
50,000
130,000
Price Index
1.0
1.05
DV LIFO
Inventory Value
80,000
52,500
132,500
On Dec. 31. 2021. Omni-Night had ending inventory at current (FIFO) costs of $165,000 and a price
index for 2021 of 1.10. Answer the following two questions.
On Dec. 31, 2021, what is Omni-Night's ending inventory at base year costs?
150,000
On Dec. 31, 2021, what is Omni-Night's ending Dollar Value LIFO inventory balance?
132,500
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