Question
In: Accounting
A) Whispering, Inc. uses the dollar-value LIFO method of computing its inventory. Data for the past...
A) Whispering, Inc. uses the dollar-value LIFO method of
computing its inventory. Data for the past 3 years
follow.
|
Year Ended |
Inventory at |
Price |
|||
|---|---|---|---|---|---|
|
2019 |
$21,500 | 100 | |||
|
2020 |
23,532 | 106 | |||
|
2021 |
27,664 | 112 | |||
Compute the value of the 2020 and 2021 inventories using the
dollar-value LIFO method.
|
2020 |
2021 |
|||
|---|---|---|---|---|
|
Inventory under LIFO |
$enter a dollar amount |
$enter a dollar amount |
B)
The following is a record of Sheffield Company’s transactions for Boston Teapots for the month of May 2020.
| May 1 | Balance | 468 units | @ | $18.00 | May 10 | Sale | 351 units | @ | $35.00 | ||||
| 12 | Purchase | 702 units | @ | $27.00 | 20 | Sale | 632 units | @ | $35.00 | ||||
| 28 | Purchase | 468 units | @ | $31.00 |
Assuming that perpetual inventories are not maintained and that a physical count at the end of the month shows 655 units on hand, what is the cost of the ending inventory using (1) FIFO and (2) LIFO?
|
(1) |
(2) |
|||
| Ending Inventory |
$ |
$ |
Assuming that perpetual records are maintained and they tie into the general ledger, calculate the ending inventory using (1) FIFO and (2) LIFO.
|
(1) |
(2) |
|||
| Ending Inventory |
$ |
$ |
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Faucci Industries, Inc. uses the dollar-value LIFO method of computing its inventory cost with December 31,...
Faucci Industries, Inc. uses the dollar-value LIFO method of
computing its inventory cost with December 31, 2015 representing
the base cost. Data for the past five years follows:
Year Ended December 31,
Inventory at FIFO
Index
2015
$ 85,000
100
2016
92,400
105
2017
102,120
111
2018
102,600
114
2019
110,200
116
Required:
Determine the inventory valuation for 2016 through 2019 using
the dollar-value LIFO technique.
Kingston Company uses the dollar-value LIFO method of computing inventory. An external price index is used...
Kingston Company uses the dollar-value LIFO method of computing
inventory. An external price index is used to convert ending
inventory to base year. The company began operations on January 1,
2021, with an inventory of $201,000. Year-end inventories at
year-end costs and cost indexes for its one inventory pool were as
follows: Year Ended Ending Inventory Cost Index December 31 at
Year-End Costs (Relative to Base Year) 2021 $ 291,600 1.08 2022
376,420 1.18 2023 355,350 1.15 2024 349,650 1.11...
Rose, Inc. uses the dollar-value LIFO retail inventory method. For years ending 2015-2019 they counted the...
Rose, Inc. uses the dollar-value LIFO retail inventory method.
For years ending 2015-2019 they counted the following dollar
amounts for inventory at retail prices
2015 $124,000
2016 $138,600
2017 $157,500
2018 $149,240
2019 $155,700
As far as prices are concerned, the following year end price
indexes were estimated as:
2015 1.00
2016 1.04
2017 1.10 (10 percent higher prices than in 2015)
2018 1.13
2019 1.15
The cost to retail percentage for those items added in each year
were as...
Brief Exercise 8-8 LIFO method [LO8-4] Esquire Inc. uses the LIFO method to value its inventory....
Brief Exercise 8-8 LIFO method [LO8-4]
Esquire Inc. uses the LIFO method to value its inventory.
Inventory at January 1, 2018, was $500,000 (25,000 units at $20
each). During 2018, 90,000 units were purchased, all at the same
price of $27 per unit. 95,000 units were sold during 2018. Esquire
uses a periodic inventory system.
Complete the below table to calculate the December 31, 2018, ending
inventory and cost of goods sold for 2018.
Cost of Goods Available for
Sale...
Webster Products, Inc., adopted the dollar-value LIFO method of determining inventory costs
Webster Products, Inc., adopted the dollar-value LIFO method of determining inventory costs for financial and income tax reporting on January 1, 2021. Webster continues to use the FIFO method for internal decision-making purposes. Webster’s FIFO inventories at December 31, 2021, 2022, and 2023, were $300,000, $412,500, and $585,000, respectively. Internally generated cost indexes are used to convert FIFO inventory amounts to dollar-value LIFO amounts. Webster estimated these indexes as follows:
2021................1.00
2022.................1.25
2023.................1.50
Required:
1. Determine Webster’s dollar-value LIFO inventory...
Cansela Corporation uses a periodic inventory system and the LIFO method to value its inventory. The...
Cansela Corporation uses a periodic inventory system and the
LIFO method to value its inventory. The company began 2018 with
inventory of 5,600 units of its only product. The beginning
inventory balance of $75,600 consisted of the following
layers:
2,100 units at $11 per unit
=
$
23,100
3,500 units at $15 per unit
=
52,500
Beginning inventory
$
75,600
During the three years 2018–2020, the cost of inventory remained
constant at $17 per unit. Unit purchases and...
Cansela Corporation uses a periodic inventory system and the LIFO method to value its inventory. The...
Cansela Corporation uses a periodic inventory system and the
LIFO method to value its inventory. The company began 2018 with
inventory of 6,100 units of its only product. The beginning
inventory balance of $87,200 consisted of the following layers:
2,600 units at $12 per unit = $ 31,200 3,500 units at $16 per unit
= 56,000 Beginning inventory $ 87,200 During the three years
2018–2020, the cost of inventory remained constant at $18 per unit.
Unit purchases and sales during...
Hazelton Corporation uses a periodic inventory system and the LIFO method to value its inventory. The...
Hazelton Corporation uses a periodic inventory system and the
LIFO method to value its inventory. The company began 2018 with
$84,100 in inventory of its only product. The beginning inventory
consisted of the following layers:
4,700 units at
$7 per unit
$
32,900
6,400 units at
$8 per unit
51,200
Total
$
84,100
During 2018, 6,700 units were purchased at $9 per unit and
during 2019, 8,400 units were purchased at $10 per unit. Sales, in
units, were 8,400 and...
Company ABC uses the last-in, first-out (LIFO) dollar value retail inventory method. It adopted this method...
Company ABC uses the last-in, first-out (LIFO) dollar value
retail inventory method. It adopted this method at the beginning of
this year. The cost index for the year was 1.12. Below is
information for the first year. Cost Retail BI 1082.0 1542.0 Net
purchases 3462.4 5088.6 Net Sales 0.0 4579.7 Ending inventory at
retail is: Answer The cost to retail conversion for beginning
inventory is (round to at least 3 decimal points): Answer The cost
to retail conversion for the...
what is the dollar-value method of LIFO inventory valuation? What advantage does the dollar-value method have...
what is the dollar-value method of LIFO inventory valuation?
What advantage does the dollar-value method have over the specific
goods approach of LIFO inventory valuation? Why will the
traditional LIFO inventory costing method and the dollar-value LIFO
inventory costing method produce different inventory valuations if
the composition of the inventory base changes
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