Dollar-Value LIFO Belstock Company manufactures one product. On December 31, 2015, Belstock adopted the dollar-value LIFO...

Dollar-Value LIFO

Belstock Company manufactures one product. On December 31, 2015, Belstock adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was $200,000. Inventory data for succeeding years are as follows:

Year	Inventory at Respective Year-End Prices	Price Index (Base Year 2015)
2016	$231,000	1.05
2017	299,000	1.15
2018	300,000	1.20

Required:

Compute the ending inventory using the dollar-value LIFO method for 2016, 2017, and 2018. Do not round your intermediate calculations. If required, round your answers to the nearest dollar.

1.	December 31, 2016	$ 221,000
2.	December 31, 2017	$ 267,000
3.	December 31, 2018	$

Expert Solution

2016
Adjusted 2016 inventory to 2015 base year price (231000/1.05)	220000
Value of 2015 inventory	200000
LIFO Layer (220000-200000)	20000

Value of 2015 inventory	200000*1	200000
Add: LIFO Layer	20000*1.05	21000
Ending Inventory at 2016		221000

2017
Adjusted 2017 inventory to 2015 base year price (299000/1.15)	260000
Adjusted 2016 inventory to 2015 base year price (231000/1.05)	220000
LIFO Layer (260000-220000)	40000

Value of 2015 inventory	200000*1	200000
Add: LIFO Layer 2016	20000*1.05	21000
Add: LIFO Layer 2017	40000*1.15	46000
Ending Inventory at 2017		67000

2018
Adjusted 2018 inventory to 2015 base year price (300000/1.20)	250000
Adjusted 2017 inventory to 2015 base year price (299000/1.15)	260000
LIFO Layer (250000-260000)	-10000

Value of 2015 inventory	200000*1	200000
Add: LIFO Layer 2016	20000*1.05	21000
Add: LIFO Layer 2017 (40000-10000)	30000*1.15	34500
Ending Inventory at 2018		255500

ekkarill92 answered 1 year ago

Carla Vista Company manufactures one product. On December 31, 2019, Carla Vista adopted the dollar-value LIFO...

Carla Vista Company manufactures one product. On December 31, 2019, Carla Vista adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was $960,000. Inventory data are as follows: Year Inventory at year-end prices Price index (base year 2019) 2020 $1,285,200 1.05 2021 1,840,000 1.15 2022 1,930,000 1.25 Compute the inventory at December 31, 2020, 2021, and 2022, using the dollar-value LIFO method for each year. Inventory at December 31, 2020 Inventory at...

Aber Company manufactures one product. On December 31, 2016, Aber adopted the dollar-value LIFO inventory method....

Aber Company manufactures one product. On December 31, 2016, Aber adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was $900,000. Inventory data are as follows: Year Inventory at year-end prices Price index (base year 2016) 2017 $1,260,000 1.05 2018 1,840,000 1.15 2019 1,900,000 1.25 Compute the inventory at December 31, 2017, 2018, and 2019, using the dollar-value LIFO method for each year. Inventory at December 31, 2017 $ Inventory at December...

Eastman Corporation manufactures one product. On December 31, 2018, Eastman adopted the dollar-value LIFO inventory method....

Eastman Corporation manufactures one product. On December 31, 2018, Eastman adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was $850,000. Inventory data are as follows: Year Inventory @ Year-End Prices Price Index (base year 2018 2019 $1,180,000 1.05 2020 $1,940,000 1.15 2021 $1,800,000 1.25 1. Compute the inventory at December 31, 2019, 2020 and 2021, using the dollar-value LIFO method for each year, including the LIFO Reserve....

Umni Company manufactures one product. Beginning in 2013, Umni adopted the dollar-value LIFO inventory method. Required:...

Umni Company manufactures one product. Beginning in 2013, Umni adopted the dollar-value LIFO inventory method. Required: Please show all calculations Inventory data for the years following the base-year are: Inventory at Price index Year year-end prices (base year 2013) 2013 $180,000 1.00 2014 252,000 1.05 2015 264,500 1.15 2016 387,500 1.25 a) Compute the ending inventory at December 31, 2013, 2014, 2015, and 2016, using the dollar-value LIFO method for each year. Clearly indicate the inventory amount that will be...

Olson Company adopted the dollar-value LIFO method for inventory valuation at the beginning of 2015. The...

Olson Company adopted the dollar-value LIFO method for inventory valuation at the beginning of 2015. The following information about the inventory at the end of each year is available from Olson's records: Year Current Costs Index 2014 $50,000 100 2015 60,000 108 2016 70,000 115 2017 73,000 125 2018 78,000 135 Required: 1. Calculate the dollar-value LIFO inventory at the end of each year. Do not round your intermediate calculations. Round final answers to the nearest dollar. 2015 2016 2017...

On January 1, 2015, ECT Co. adopted the dollar-value LIFO methodfor its one inventory pool....

On January 1, 2015, ECT Co. adopted the dollar-value LIFO method for its one inventory pool. The pool's value on this date was $500 million. The 2015 and 2016 ending inventory valued at year-end costs were $702 million and $840 million, respectively. The appropriate cost indexes are 1.12 for 2015 and 1.18 for 201641Calculate the inventory balance that ECT Co. would report on its year-end balance sheets for 2015 using the dollar-value LIFO method42Calculate the inventory balance that ECT Co....

Bramble Corp. adopted the dollar-value LIFO method of inventory valuation on December 31, 2016. Its inventory...

Bramble Corp. adopted the dollar-value LIFO method of inventory valuation on December 31, 2016. Its inventory at that date was $1102000 and the relevant price index was 100. Information regarding inventory for subsequent years is as follows: Date Inventory at Current Prices Current Price Index December 31, 2017 $1296000 108 December 31, 2018 1441000 125 December 31, 2019 1612000 130 What is the cost of the ending inventory at December 31, 2019 under dollar-value LIFO?

Gross Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2017. Its inventory...

Gross Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2017. Its inventory at that date was $440,000 and the relevant price index was 100. Information regarding inventory for subsequent years is as follows: Inventory at Current Date Current Prices Price Index(%) December 31, 2018 $513,600 107 December 31, 2019 580,000 125 December 31, 2020 650,000 130 4- What is the cost of the ending inventory at December 31, 2018 under...

Problem 4 Frederick Company adopted the dollar-value LIFO method on January 1, 2015 (using internal price...

Problem 4 Frederick Company adopted the dollar-value LIFO method on January 1, 2015 (using internal price indexes and multiple pools). The following data are available for inventory pool A for the 2 years following adoption of LIFO. At Base- At Current- Price Inventory Year Cost Year Cost Index 1/1/15 $100,000 $100,000 100 12/31/15 120,000 126,000 105 12/31/16 128,000 143,360 112 Using the dollar-value LIFO method, at what amount should the inventory be reported at December 31, 2016? Problem 4 Computation...

Lewis Company adopted the dollar-value LIFO method of inventory valuation on 12/31/18. Its inventory at that...

Lewis Company adopted the dollar-value LIFO method of inventory valuation on 12/31/18. Its inventory at that date was $320,000 and the relevant price index was 100. What will Lewis report as inventory at the end of 2019, 2020, 2021, and 2022 using dollar-value LIFO? Date Inv at current price current price index inv at base level price 12/31/19 338,000 104 325,000 12/31/20 371,000 106 350,000 12/31/21 372,600 108 345,000 12/31/22 381,500 109 350,000

Question