Question

Gross Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2013. Information regarding inventory for 2013 and subsequent years is as follows:DateInventory atCurrent PricesCurrentPrice IndexDecember 31, 2013$550,000100December 31, 2014642,000105December 31, 2015725,000110December 31, 2016812,500115What is the cost of the ending inventory at December 31, 2016 under dollar-value LIFO?

13. Gross Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2013. Information regarding inventory for 2013 and subsequent years is as follows: Date December 31, 2013 December 31, 2014 December 31, 2015 December 31, 2016 Inventory at Current Current Prices Price Index $550,000 100 642,000 105 725,000 110 812,500 115 What is the cost of the ending inventory at December 31, 2016 under dollar-value LIFO?

Answer 1

Dollar Value LIFO Method Dec 31st,2013 Closing inventory value Inventory Change from Inventory at end of the year Price at base year prior year =550000 1.0 $ 550000 Dec 31st,2014 =550000 1.0 $ 550000 = 61429* 1.05 $64500 Total $614500 index Date 550000 100 550000 Dec 31st,2013 550000 Closing inventory value 611428.6 Dec 31st,2014 61429 642000 105 725000 47662 Dec 31st,2015 659090.9 110 Dec 31st,2016 115 706521.7 47431 812500 Dec 31st,2015 =550000 1.0 $ 550000 = 61429* 1.05 $64500 = 47662* 1.10 = $ 52428 Closing inventory value Closing inventory at end of dec 31st 721474 Total $666928 Dec 31st,2016 =550000 1.0 $ 550000 =61429 1.05 $64500 Closing inventory value Please provide feedback with UP Vote ( Like) =476621.10 $ 52428 = 47431* 1.15 = $ 54546 Total $721474