Question

December 290,000 135.000 LION Dec 31 Ost, nuo 240,000 Be year 2016 2000 1.330 OG 20,000x1.07.21400 Total = 241400 90,000 23000 Bas you: 220,00 - 220.000 JO 9 0.000 1. 00 2017 = 6.00 x 1.25= 10.0 Total = 444,00 14 What is the cost of the digitory December 31, 2016 de doll LIFO 3)Sow 1.30 • OSO OUD Base year 220 juo x1 = 220,00 Joll 2010 y 10721400 2017 : 12,000 1.25 = 17,00 2018-0

Answer 1

Answer :

Cost of ending inventory at December 31,2016 under dollar value LIFO =$241400.

Cost of ending inventory at December 31,2017 under dollar value LIFO = $232840.

Cost of ending inventory at December 31,2018 under dollar value LIFO = $252100.

Solution :

Date	inventory at current prices	price index	inventory at base prices	change:increase/decrease
December 31,2015	$220000	100	$220000
December 31,2016	$256800	107	$240000	$20000
December 31,2017	$290000	125	$232000	($8000)
December 31,2018	$325000	130	$250000	($18000)

Inventory under Dollar value LIFO :

2016:

$220000 × 1 = $220000

$20000 × 1.07 = $21400

Total = $241400

2017:

$220000 × 1 = $220000

$12000 × 1.07 = $12840

Total = $232840

2018:

$220000 × 1 = $220000

$30000 × 1.07 = $32100

Total = $252100