Question

8. (10 points) The following information relates to the Windsor Company.DateEnding Inventory(End-of-Year Prices)PriceIndexDecember 31, 2013$ 63,500100December 31, 2014105,434119December 31, 2015113,446131December 31, 2016128,792136December 31, 2017118,158141Use the dollar-value LIFO method to compute the ending inventory for Windsor Company for 2013 through 2017.

8. (10 points) The following information relates to the Windsor Company Ending Inventory (End-of-Year Prices) Index Price Date $63,500 December 31, 2013 100 December 31, 2014 105,434 119 December 31, 2015 113,446 131 December 31, 2016 128,792 136 141 December 31, 2017 118,158 Use the dollar-value LIFO method to compute the ending inventory for Windsor Company for 2013 through 2017.

Answer 1

Calculate ending inventory

		Ending inventory
2013		63500
2014	105434/119 = 88600	(63500+25100*1.19) = 93369
2015	113446/1.31 = 86600	(63500+23100*1.19) = 90989
2016	128792/1.36 = 94700	(90989+8100*1.36) = 102005
2017	118158/1.41 = 83800	63500+20300*1.19 = 87657