Question

Exercise 8-23 Your answer is partially correct. Try again. The following information relates to the Stellar Company. Ending Inventory (End-of Year Price Date Prices) December 31, 2013 December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017 $69,400 102,080 110,208 123,816 116,058 Index 100 116 128 132 138 Use the dollar-value LIFO method to compute the ending inventory for Stellar C Ending Inventory 2013 69400 2014 90976 2015 88772 2016 98632 2017 86452 Click if you would like to Show Work for this question: Open Show Wor LINK TO TEXT
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Answer #1

Answer

  • All working forms part of the answer
  • You have successfully calculated all the values for all years except for Year 2016.
  • I’m helping you with the same [2016 Value]
  • Working:

Price Index

Ending Inventory

Inventory at Base Year

Change from Prior Year

1

$        69,400.00

$        69,400.00

$                       -  

1.16

$      102,080.00

$        88,000.00

$        18,600.00

1.28

$      110,208.00

$        86,100.00

$        (1,900.00)

1.32

$      123,816.00

$        93,800.00

$          7,700.00

1.38

$      116,058.00

$        84,100.00

$        (9,700.00)

  • Dollar Value LIFO calculation for Year 2016

Inventory

Price Index

Ending Inventory Dollar Value LIFO

$        69,400.00 [base year inventory]

1

$        69,400.00

$        16,700.00 [18600 – 1900]

1.16

$        19,372.00

$          7,700.00 [2016]

1.32

$        10,164.00

$        93,800.00 [total = value equal to 2016 Inventory at base Year]

$        98,936.00

  • Hence, correct figure to be filled in Year 2016 = $ 98,936.
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