Question

The following information relates to the Chris Anderson Company. Date December 31, 2016 December 31, 2017 December 31, 2018 December 31, 2019 December 31, 2020 Ending Inventory (End-of-Year Prices) $ 65,400 107,690 115.976 130,410 121,104 Price Index 100 121 133 138 144 Use the dollar-value LIFO method to compute the ending inventory for Anderson Company for 2016 through 2020. Ending Inventory 2016 2017 2018 $ $ $ 2019 $ 2020 $

Answer 1

Answer:

Computation of inventory at base year prices and change from prior year - Sarasota Company
Date	Inventory at end of year prices	Price index (Percentage)	Inventory at base year prices	Change from Prior Years
31-Dec-13	$65400	100	$65400	$0.00
31-Dec-14	$107690	121	$89000	$23600
31-Dec-15	$115976	133	$87200	-$1800
31-Dec-16	$130410	138	$94500	$7300
31-Dec-17	$121104	144	$84100	-$10400

Computation of dollar value inventory - LIFO
Particulars	Amount
December 31, 2016:
$65400*$1	$65400
December 31, 2017:
$65400*$1	$65,400.00
$23600*1.21	$28,556.00
Inventory at Dec 31, 2017	$93,956.00
December 31, 2018:
$65,400*$1	$65,400.00
$21800*1.21	$26,378.00
Inventory at Dec 31, 2018	$91,778.00
December 31, 2016:
$65,400*$1	$65,400.00
$21800*1.21	$26,378.00
$7300*1.38	$10,074.00
Inventory at Dec 31, 2019	$101,852.00
December 31, 2020:
$65,400*$1	$65,400.00
$18700*1.21	$22,627.00
Inventory at Dec 31, 2020	$88,027.00