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At the beginning of 2018, Quentin and Kopps (Q&K) adopted the dollar-value LIFO (DVL) inventory method....

At the beginning of 2018, Quentin and Kopps (Q&K) adopted the dollar-value LIFO (DVL) inventory method. On that date the value of its one inventory pool was $81,000. The company uses an internally generated cost index to convert ending inventory to base year.


Required:
Determine the missing amounts in the inventory data for 2018 through 2021.

Year Ended Ending Inventory At Ending Inventory At Ending Inventory At
31-Dec Year-End Costs Base Year Costs Cost Index DVL Cost
2018 $                     95,550.00 $                     91,000.00 1.05
2019 $                   134,520.00 1.10
2020 $                   146,640.00 $                   122,200.00
2021 1.25 $                    130,820.00

Solutions

Expert Solution

Determine the missing amounts in the inventory data for 2018 through 2021.

Year Ended Ending Inventory At Ending Inventory At Ending Inventory At
31-Dec Year-End Costs Base Year Costs Cost Index DVL Cost
2018 $                     95,550.00 $                     91,000.00 1.05 (81000+10000*1.05) = 91500
2019 $                   134,520.00 134520/1.1 = 122290 1.10 (91500+34420) = 125920
2020 $                   146,640.00 $                   122,200.00 1.20 (91500+31200*1.1) = 125820
2021 157750 122200+4000 = 126200 1.25 $                    130,820.00

ekkarill92 answered 2 years ago
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