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 December 31, 2021

Inventory at December 31, 2022

Expert Solution

Date	Inventory at Year End Prices	Price Index (Base Year 2019)	Inventory at Base year Prices	Change From Previous Year
December 31, 2019	$960,000	1	$960,000	0
December 31, 2020	$1,285,200	1.05	$1,224,000	$264,000
December 31, 2021	$1,840,000	1.15	$1,600,000	$376,000
December 31, 2022	$1,930,000	1.25	$1,544,000	($56,000)

Now we can compute the dollar value inventory:

December 31, 2019
$960,000 @ 1.0	$960,000

December 31, 2020
$960,000 @ 1.0	$960,000
$264,000 @ 1.05	$277,200
December 31, 2020	$1,237,200

December 31, 2021
$960,000 @ 1.0	$960,000
$264,000 @ 1.05	$277,200
$376,000 @ 1.15	$432,400
December 31, 2021	$1,669,600

December 31, 2022
$960,000 @ 1.0	$960,000
$264,000 @ 1.05	$277,200
$320,000 @ 1.15	$368,000
December 31, 2022	$1,605,200

The Index price(1.15) of 2021 has been used because the ending inventory at base-year-prices ($1,544,000) is less than the beginning inventory at base-year-prices ($1,600,000).

ekkarill92 answered 2 years ago

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....

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...

Carla Vista Company has a December 31 fiscal year end. Selected information follows for Carla Vista...

Carla Vista Company has a December 31 fiscal year end. Selected information follows for Carla Vista Company for two independent situations as at December 31, 2021: 1. Carla Vista purchased a patent from Tamarisk Inc. for $411,000 on January 1, 2018. The patent expires on January 1, 2026. Carla Vista has been amortizing it over its legal life. During 2021, Carla Vista determined that the patent’s economic benefits would not last longer than six years from the date of acquisition....

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...

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

On January 1, 2018, the Haskins Company adopted the dollar-value LIFO method for its one inventory...

On January 1, 2018, the Haskins Company adopted the dollar-value LIFO method for its one inventory pool. The pool’s value on this date was $850,000. The 2018 and 2019 ending inventory valued at year-end costs were $897,000 and $972,000, respectively. The appropriate cost indexes are 1.04 for 2018 and 1.08 for 2019. Required: Complete the below table to calculate the inventory value at the end of 2018 and 2019 using the dollar-value LIFO method. (Round "Year end cost index" to...

Marin Corporation adopted the dollar-value LIFO retail inventory method on January 1, 2019. At that time...

Marin Corporation adopted the dollar-value LIFO retail inventory method on January 1, 2019. At that time the inventory had a cost of $52,000 and a retail price of $100,000. The following information is available. Year-End Inventory at Retail Current Year Cost—Retail % Year End Price Index 2019 $119,780 60% 106 2020 147,400 63% 110 2021 124,260 64% 114 2022 148,750 61% 125 The price index at January 1, 2019, is 100. Compute the ending inventory at December 31 of the...

Question