Question

Presented below is information related to Kingbird Company.

Date		Ending Inventory (End-of-Year Prices)				Price Index
December 31, 2017			$ 78,200			100
December 31, 2018			242,950			215
December 31, 2019			239,604			246
December 31, 2020			271,272			267
December 31, 2021			320,579			287
December 31, 2022			382,833			297

Compute the ending inventory for Kingbird Company for 2017 through 2022 using the dollar-value LIFO method.

			Ending Inventory
2017			$enter a dollar amount
2018			$enter a dollar amount
2019			$enter a dollar amount
2020			$enter a dollar amount
2021			$enter a dollar amount
2022			$enter a dollar amount

Answer 1

	Ending Inventory
2017	$                                                             78,200
2018	$                                                         1,53,020
2019	$                                                         1,19,480
2020	$                                                         1,30,694
2021	$                                                         1,59,681
2022	$                                                         2,10,765
Workings:
Date	Ending Inventory	Price Index	Base year prices	Increase / (Decrease)
	(i)	(ii)	(iii) = [(i) / (ii)]*100	(iv)
2017	$                                                             78,200	100	$                        78,200	$                                     -
2018	$                                                         2,42,950	215	$                    1,13,000	$                           34,800
2019	$                                                         2,39,604	246	$                        97,400	$                          -15,600
2020	$                                                         2,71,272	267	$                    1,01,600	$                              4,200
2021	$                                                         3,20,579	287	$                    1,11,700	$                           10,100
2022	$                                                         3,82,833	297	$                    1,28,900	$                           17,200
			Ending Inventory under LIFO
2017	($78200*1)	=	$                        78,200
2018	($78200*1) + ($34800*2.15)	=	$                    1,53,020
2019	($78200*1) + [($34800-$15600)*2.15]	=	$                    1,19,480
2020	($78200*1) + ($19200*2.15) + ($4200*2.67)	=	$                    1,30,694
2021	($78200*1) + ($19200*2.15) + ($4200*2.67) + (10100*2.87)	=	$                    1,59,681
2022	($78200*1) + ($19200*2.15) + ($4200*2.67) + (10100*2.87) + (17200*2.97)	=	$                    2,10,765