Question

Presented below is information related to Bonita Company. Ending Inventory (End-of-Year Prices) Date Price Index $ 78,300 100 169,936 169,128 December 31, 2017 December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021 December 31, 2022 191,457 226,345 269.220 Compute the ending inventory for Bonita Company for 2017 through 2022 using the dollar-value LIFO method.

Answer 1

Solution:

Realize a mistake in solution. Please find below the updated answer

	Ending Inventory
2017	$78,300
2018	$129,220
2019	$107,028
2020	$114,777
2021	$135,483
2022	$170,553

Refer working below for the above ending inventory.

Date	Ending Inventory (End of Year Prices)	Price Index	Inventory at base year prices	Change from prior year
Dec.31, 2017	$78,300	100	$78,300	0
Dec.31, 2018	$169,936	152	$111,800	$33,500
Dec.31, 2019	$169,128	174	$97,200	-$14,600
Dec.31, 2020	$191,457	189	$101,300	$4,100
Dec.31, 2021	$226,345	203	$111,500	$10,200
Dec.31, 2022	$269,220	210	$128,200	$16,700

	Working	LIFO Dollar Inventory Value
Dec.31, 2017
$78,300*1	$78,300	$78,300
Dec.31, 2018
$78,300*1	$78,300
$33,500*1.52	$50,920	$129,220
Dec.31, 2019
$78,300*1	$78,300
($33,500-14,600)*1.52	$28,728	$107,028
Dec.31, 2020
$78,300*1	$78,300
($33,500-14,600)*1.52	$28,728
$4,100*1.89	$7,749	$114,777
Dec.31, 2021
$78,300*1	$78,300
($33,500-14,600)*1.52	$28,728
$4,100*1.89	$7,749
$10,200*2.03	$20,706	$135,483
Dec.31, 2022
$78,300*1	$78,300
($33,500-14,600)*1.52	$28,728
$4,100*1.89	$7,749
$10,200*2.03	$20,706
$16,700*2.1	$35,070	$170,553