Question
In: Accounting
Retail Corp adopted the dollar-value LIFO method on 1-1-2015. (Divide; separate into layers; multiply each layer...
Retail Corp adopted the dollar-value LIFO method on 1-1-2015.
(Divide; separate into layers; multiply each layer by own index)
4
|
Date |
Year-end inventory at year-end cost |
Cost index at date indicated |
Ending inventory at base year cost |
separate into layers and multiply by own index |
Sum recomputed layers |
|
1-1-15 |
$100,000 |
1.00 |
|||
|
12-31-15 |
$220,000 |
1.10 |
|||
|
12-31-16 |
$225.000 |
1.20 |
|||
|
12-31-17 |
$240,000 |
1.30 |
|||
|
12-31-18 |
$300,000 |
1.35 |
Solutions
Expert Solution
| Date | Year-end inventory at year-end cost | Cost index at date indicated | Ending inventory at base year cost | separate into layers and multiply by own index | Sum recomputed layers |
| 1/1/2015 | $ 100,000.00 | 1.00 | 100,000.00 | =$100,000*1.00 | 100,000.00 |
| 12/31/2015 | $ 220,000.00 | 1.10 | 200,000.00 |
=$100,000*1.00 '=$100,000*1.10 |
$100,000.00 $110,000.00 =$210,000.00 |
| 12/31/2016 | $ 225,000.00 | 1.20 | 187,500.00 |
=$100,000*1.00 =$87,500*1.10 |
$100000.00 $96250.00 =$196,250.00 |
| 12/31/2017 | $ 240,000.00 | 1.30 | 184,615.00 |
=$100,000*1.00 =$84,615*1.20 |
$100,000.00 $101,538.00 =201,538.00 |
| 12/31/2018 | $ 300,000.00 | 1.35 | 222,222.00 |
=$100,000*1.00 =$122,222*1.30 |
$100,000.00 $158,889.00 =258,889.00 |
ekkarill92 answered 1 year agoRelated Solutions
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Current Costs
Index
2014
$50,000
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2015
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108
2016
70,000
115
2017
73,000
125
2018
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135
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2016
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$
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256,000
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Net markdowns
14,000
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230,000
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Required:
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154000
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1.20
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171000
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Required:
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