Question

Question 7 0.5/1 View Policies Show Attempt History Current Attempt in Progress Presented below is information related to Waterway Company. Ending Inventory (End-of-Year Prices) Price Index Date December 31, 2017 $ 76,400 100 December 31, 2018 231,240 205 December 31, 2019 225,576 234 December 31, 2020 254,762 254 December 31, 2021 305,487 273 December 31, 2022 363,089 283 Compute the ending inventory for Waterway Company for 2017 through 2022 using the dollar-value LIFO method. Ending Inventory

Answer 1

Year year end. Index. Base price. Changes

2017 76,400 100 76,400 0

2018 231,240 205 112,800 36,400 (112,800- 76,400)

2019 225,576 234 96,400 -16,400

2020 254,762 254 100,300. 3,900

2021 305,487 273 111,900. 11,600

2022 363,089 283 128,300. 16,400

2017 = 76,400*1 = $ 76,400

2018 = 76,400*1 + 36,400*2.05 =$ 151,020

2019 = 76,400*1 + 20,000 *2.05 =$ 117,400

2020 = 76,400*1 + 20,000*2.05 + 3,900*2.54 =$ 127,306

2021 = 76,400*1 + 20,000*2.05 + 3,900*2.54 + 11,600*2.73=$ 158,974

2022 = 76,400*1 + 20,000*2.05 + 3900*2.54 + 11,600*2.73 + 16,400*2.83 =$ 196,694

Note

Base price have been calculated by dividing the year end inventory with the index . Example 231,240/205 = 112,800

Also as there is a reduction of 16,400 in inventory in 2019 therefore that amount have been reduced from the previous amount of 36400 that will be 20,000.