Question
In: Accounting
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 2016
41
Calculate the inventory balance that ECT Co. would report on its year-end balance sheets for 2015 using the dollar-value LIFO method
42
Calculate the inventory balance that ECT Co. would report on its year-end balance sheets for 2016 using the dollar-value LIFO method
Solutions
Expert Solution
| Year | Ending inventory @ cost | Cumulative price index | Ending inventory @ base year | Layer change @ base year | Layer change @ Current $ value | Layer change @ $ value LIFO |
| Beg 2015 | $ 500 | 1 | $ 500 | $ 500 | $ 500 | $ 500 |
| End 2015 | $ 702 | 1.12 | $ 627 | $ 127 | $ 142 | $ 642 |
| 2016 | $ 840 | 1.18 | $ 712 | $ 85 | $ 100 | $ 742 |
41. Inventory balance on its year end balance sheet for 2015 - $642
42. Inventory balance on its year end balance sheet for 2016 - $742.
ekkarill92 answered 2 years agoRelated Solutions
On January 1, 2020, ECT Co. adopted the dollar-value LIFO method for its one inventory pool....
On January 1, 2020, ECT Co. adopted the dollar-value LIFO method
for its one inventory pool. The pool's value on this date was $600
million. The 2020 and 2021 ending inventory valued at year-end
costs were $702 million and $840 million, respectively. The
appropriate cost indexes are 1.08 for 2020 and 1.20 for 2021.
Required:
Calculate the inventory balance that ECT Co. would report on its
year-end balance sheets for 2020 and 2021, using the dollar-value
LIFO method and submit...
Sparky Company adopted Dollar Value LIFO (DVL) on January 1, 20x1 for its one inventory pool....
Sparky Company adopted Dollar Value LIFO (DVL) on January 1,
20x1 for its one inventory pool. The inventory's value on this date
was $360,000. The ending inventory valued at year-end costs for
20x1, 20x2 and 20x3 are reported below along with the price index
for each year:
Year
Ending Inventory at Year-end Costs
Specific Price Index
Dec 31, 20X1
$407,570
106
Dec 31, 20X2
$439,450
110
Dec 31, 20X3
$427,800
115
a. Determine the Ending Inventory value to be reported...
Sparky Company adopted Dollar Value LIFO (DVL) on January 1, 20x1 for its one inventory pool....
Sparky Company adopted Dollar Value LIFO (DVL) on January 1,
20x1 for its one inventory pool. The inventory's value on this date
was $360,000. The ending inventory valued at year-end costs for
20x1, 20x2 and 20x3 are reported below along with the price index
for each year:
Year
Ending Inventory at Year-end Costs
Specific Price Index
Dec 31, 20X1
$407,570
106
Dec 31, 20X2
$439,450
110
Dec 31, 20X3
$427,800
115
a. Determine the Ending Inventory value to be reported...
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...
The dollar-value LIFO method was adopted by Blossom Corp. on January 1, 2020. Its inventory on...
The dollar-value LIFO method was adopted by Blossom Corp. on
January 1, 2020. Its inventory on that date was $399,900. On
December 31, 2020, the inventory at prices existing on that date
amounted to $380,800. The price level at January 1, 2020, was 100,
and the price level at December 31, 2020, was 112.
On December 31, 2021, the inventory at prices existing on that
date was $421,245, and the price level was 115. Compute the
inventory on that date...
The dollar-value LIFO method was adopted by Riverbed Corp. on January 1, 2017. Its inventory on...
The dollar-value LIFO method was adopted by Riverbed Corp. on
January 1, 2017. Its inventory on that date was $220,000. On
December 31, 2017, the inventory at prices existing on that date
amounted to $201,600. The price level at January 1, 2017, was 100,
and the price level at December 31, 2017, was 112.
Compute the amount of the inventory at December 31, 2017, under
the dollar-value LIFO method.
Inventory 12/31/17 under dollar-value LIFO method
On December 31, 2018, the...
On January 1, 2021, Avondale Lumber adopted the dollar-value LIFO inventory method. The inventory value for...
On January 1, 2021, Avondale Lumber adopted the dollar-value
LIFO inventory method. The inventory value for its one inventory
pool on this date was $275,000. An internally generated cost index
is used to convert ending inventory to base year. Year-end
inventories at year-end costs and cost indexes for its one
inventory pool were as follows:
Year Ended
Inventory
Cost Index
December 31
Year-End Costs
(Relative to Base Year)
2021
$
364,350
1.05
2022
374,960
1.09
2023
424,600
1.10
2024
454,260...
On January 1, 2021, Avondale Lumber adopted the dollar-value LIFO inventory method. The inventory value for...
On January 1, 2021, Avondale Lumber adopted the dollar-value
LIFO inventory method. The inventory value for its one inventory
pool on this date was $330,000. An internally generated cost index
is used to convert ending inventory to base year. Year-end
inventories at year-end costs and cost indexes for its one
inventory pool were as follows:
Year Ended
Inventory
Cost Index
December 31
Year-End Costs
(Relative to Base Year)
2021
$
418,080
1.04
2022
429,840
1.08
2023
482,870
1.09
2024
520,240...
On January 1, 2018, Avondale Lumber adopted the dollar-value LIFO inventory method. The inventory value for...
On January 1, 2018, Avondale Lumber adopted the dollar-value
LIFO inventory method. The inventory value for its one inventory
pool on this date was $350,000. An internally generated cost index
is used to convert ending inventory to base year. Year-end
inventories at year-end costs and cost indexes for its one
inventory pool were as follows:
Year
Ended
Inventory
Cost Index
December
31
Year-End Costs
(Relative to Base Year)
2018
$
438,780
1.03
2019
451,540
1.07
2020
508,680
1.08
2021
548,895...
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...
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