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Inventory for Charles Smart company is as follows: 2015 Current Cost 200000.00 Index 1.00 2016 Current...

Inventory for Charles Smart company is as follows:

2015 Current Cost 200000.00 Index 1.00

2016 Current Cost 230000.00 Index 1.20

2017 Current Cost 250000.00 Index 1.40

Compute dollar value LIFO for 2015, 2016, and 2017

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Expert Solution

inventory at base year prices = inventory at end of year prices / price index

December 31, Ending inventory(a) Price index(b) Inventory at Base year prices(a/b) Change from prior year
2015           200,000                 1        200,000
2016           230,000            1.20        191,667              (8,333)
2017           250,000            1.40        178,571            (13,095)
Ending inventory - dollar value lifo
December 31,
2015 200000X1          200,000
Total          200,000
2016 191667X1          191,667
Total          191,667
2017 178571X1          178,571
Total          178,571

ekkarill92 answered 3 years ago
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