Question

LUIS C D Presented below is information related to Meghani Company. Ending Inventory m in 100 Date 3 (End-of-Year) (FIFO) Price Index 2018 $128.000 2019 212,000 105 2020 218,658 110 2021 262,500 2022 305,500 2023 310.800 150 10 Instructions: Compute the ending inventory for Meghani Company for 2018 through 2023 using the dollar-value LIFO method 00 Invent Inventory at end-of-year Inventory at base-year Price Inde: pnce Layers Index 2018 Value LIFO Value LIFO Total LIFO Reserve 2019 2020 2021 2022 2023

Answer 1

Date (end of the year)	Ending Inventory FIFO	Price Index	Ending Inventory
2018	$                           128,000	100	128000	$                                     128,000
2019	$                           212,000	105	201,905 / 1.05	$                                     201,905
2020	$                           218,658	110	198,780 / 1.1	$                                     198,780
2021	$                           262,500	120	218,750 / 1.2	$                                     218,750
2022	$                           305,500	130	235,000 / 1.3	$                                     235,000
2023	$                           310,800	150	207,200 / 1.5	$                                     207,200

Date (end of the year)	Inventory at end of year prices	Price Index	Inventory at base year price	Layer	Index	Value LIFO	Value LIFO Total	LIFO Reserve
2018	$                           128,000	1	$                        128,000	$                                     128,000	1	$        128,000	$              128,000	$                   -
2019	$                           212,000	1.05	$                        201,905	$                                     128,000	1	$        128,000
				$                                        73,905	1.05	$          77,600	$              205,600	$            6,400
2020	$                           218,658	1.1	$                        198,780	$                                     128,000	1	$        128,000
				$                                        70,780	1.05	$          74,319	$              202,319	$            9,939
2021	$                           262,500	1.2	$                        218,750	$                                     128,000	1	$        128,000
				$                                        70,780	1.05	$          74,319
				$                                        19,970	1.2	$          23,964	$              226,283	$          19,878
2022	$                           305,500	1.3	$                        235,000	$                                     128,000	1	$        128,000
				$                                        70,780	1.05	$          74,319
				$                                        19,970	1.2	$          23,964
				$                                        16,250	1.3	$          21,125	$              247,408	$          21,875
2023	$                           310,800	1.5	$                        207,200	$                                     128,000	1	$        128,000
				$                                        70,780	1.05	$          74,319
				$                                          8,420	1.5	$          12,630	$              214,949	$          37,759

Year	Journal Entries	Debit	Credit
2019	COGS	$          6,400
	To LIFO Reserve		$                             6,400
2020	COGS	$          9,939
	To LIFO Reserve		$                             9,939
2021	COGS	$        19,878
	To LIFO Reserve		$                          19,878
2022	COGS	$        21,875
	To LIFO Reserve		$                          21,875
2023	COGS	$        37,759
	To LIFO Reserve		$                          37,759