Question

Hello! I have worked out all these questions, but want to double check them with your answers before submitting them. Thanks!

1. On December 31, 20X1, a company adopted the dollar-value LIFO inventory method. Inventory at the end of 20X1 for its only inventory pool was $400,000 under the dollar-value LIFO method. At the end of 20X2, inventory at year-end cost is $473,000 and the cost index is 1.10. At the end of 20X3, inventory at year-end cost is $492,000 and the cost index is 1.20. Inventory at the end of 20X3 at dollar-value LIFO cost is:

2. A company uses the dollar-value LIFO inventory method. At the end of 20X2 the cost index is 1.25 and the ending inventory at base year cost is $360,000. If 20X2 beginning inventory at base year cost was $300,000, 20X2 ending inventory at dollar-value LIFO cost is:

3. Sanfillipo, Inc., had 800 units of inventory on hand at March 1 of the current year, costing $20 each. Purchases and sales of inventory during the month of March were as follows:

Date	Purchases	Sales
March 8		600	units
15	400 units @ $22 each
22	400 units @ $24 each
27		400	units

Sanfillipo uses the perpetual inventory system. According to a physical count, 600 units were on hand at the end of March.

The cost of goods sold for March applying the FIFO method is:

4. On December 31, 20X1, a company adopted the dollar-value LIFO inventory method. Inventory at the end of 20X1 for its only inventory pool was $500,000 under the dollar-value LIFO method. At the end of 20X2, inventory at year-end cost is $672,000 and the cost index is 1.05. Inventory at the end of 20X2 at dollar-value LIFO cost is:

Multiple Choice

• $625,000

• $640,000

• $647,000

• $672,000

Answer 1

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