Question

Question 1 View Policies Current Attempt in Progress Oriole Company had ending Inventory at end-of-year prices of $122.000 at December 31, 2019, $146,278 at December 31, 2020, and $164,100 at December 31, 2021. The year-end price indexes were 100 at 12/31/19, 110 at 12/31/20, and 120 at 12/31/21. Compute the ending inventory for Oriole Company for 2019 through 2021 using the dollar-value LIFO method. 2021 2020 2019 Ending Inventory $

Answer 1

Solution:

Computation of inventory at base year prices and change from prior year
Year	Inventory at end of year prices	Price index	Inventory at base year prices	Change from Prior Years
2019	$122,000.00	100	$122,000.00	$0.00
2020	$146,278.00	110	$132,980.00	$10,980.00
2021	$164,100.00	120	$136,750.00	$3,770.00

Computation of dollar value inventory - LIFO
Particulars	Amount
December 31, 2019:
$122,000*$1	$122,000
Inventory at Dec 31, 2019	$122,000
December 31, 2020:
$122,000*$1	$122,000
$10,980*$1.10	$12,078
Inventory at Dec 31, 2020	$134,078
December 31, 2021:
$122,000*$1	$122,000
$10,980*$1.10	$12,078
$3,770*1.20	$4,524
Inventory at Dec 31, 2021	$138,602