Question

The following information related to ABC Inc.

Date    Ending Inventory Price Index

December 31, 2013 $ 66,600   100

December 31, 2014 111,104 124

December 31, 2015 119,875 137

December 31, 2016 136,178 142

December 31, 2017 126,244 148

Use the dollar-value LIFO method to compute the ending inventory for ABC.

Ending Inventory:

2013 -

2014 -

2015 -

2016 -

2017 -

Answer 1

Solution:

Computation of inventory at base year prices and change from prior year -ABC Inc.
Year	Inventory at end of year prices	Price index	Inventory at base year prices	Change from Prior Years
2013	$66,600.00	100	$66,600.00	$0.00
2014	$111,104.00	124	$89,600.00	$23,000.00
2015	$119,875.00	137	$87,500.00	-$2,100.00
2016	$136,178.00	142	$95,900.00	$8,400.00
2017	$126,244.00	148	$85,300.00	-$10,600.00

Computation of dollar value inventory - LIFO
Particulars	Amount
December 31, 2013:
$66,600*$1	$66,600
Inventory at Dec 31, 2013	$66,600
December 31, 2014:
$66,600*$1	$66,600
$23,000*$1.24	$28,520
Inventory at Dec 31, 2014	$95,120
December 31, 2015:
$66,600*$1	$66,600
$20,900*$1.24	$25,916
Inventory at Dec 31, 2015	$92,516
December 31, 2016:
$66,600*$1	$66,600
$20,900*$1.24	$25,916
$8,400*1.42	$11,928
Inventory at Dec 31, 2016	$104,444
December 31, 2017:
$66,600*$1	$66,600
$18,700*$1.24	$23,188
Inventory at Dec 31, 2017	$89,788