Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Chapter 10, Problem 10.7P
Dollar-Value LIFO. LIFO Liquidation. Silvio's Taverns, Inc. adopted the dollar-value LIFO Method in 2015 Information related to Silvio's inventory follows:
| Year | Ending Inventory at End-of-Year Prices per FIFO |
Cumulative Price Index |
| 2015 | $505,000 | 100 |
| 2016 | 612,000 | 103 |
| 2017 | 645,000 | 108 |
| 2018 | 487,000 | 112 |
| 2019 | 610,000 | 119 |
Required
- a. Compute Silvio's ending inventory under the dollar-value LIFO method for the years 2015 through 2019
- b. Prepare the
journal entries for 2016 through 2019 to adjust inventory to the dollar-value LIFO basis. - c. Determine the ending balance of the LIFO reserve for 2016 through 2019.
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Presented below is information related to Splish Company.
Date
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December 31, 2018
December 31, 2019
December 31, 2020
December 31, 2021
December 31, 2022
2017 $
2018
$
2021
2022
2019 $
2020 $
27
547
Compute the ending inventory for Splish Company for 2017 through 2022 using the dollar-value LIFO method.
$
$
is
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292,006
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308
319
Presented below is information related to Novak Company.
December 31, 2017
December 31, 2018
December 31, 2019
December 31, 2020
December 31, 2021
December 31, 2022
2017
2018
Date
2019
2020
2021
2022
$
LA
$
Ending Inventory
(End-of-Year Prices)
$ 84,500
267,624
267,300
LA
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Presented below is information related to Crane Company.
Date
Ending Inventory(End-of-Year Prices)
PriceIndex
December 31, 2017
$ 72,600
100
December 31, 2018
122,100
110
December 31, 2019
119,952
126
December 31, 2020
135,630
137
December 31, 2021
160,230
147
December 31, 2022
190,608
152
Compute the ending inventory for Crane Company for 2017 through 2022 using the dollar-value LIFO method.
Ending Inventory
2017
$enter a dollar amount
2018
$enter a dollar amount
2019
$enter a dollar amount
2020
$enter a dollar amount
2021
$enter a dollar amount
2022
$enter a dollar amount
Chapter 10 Solutions
Intermediate Accounting
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