The following information relates to the Novak Company. Date Ending Inventory (End-of-Year Prices) Price Index December...

The following information relates to the Novak Company.

Date	Ending Inventory (End-of-Year Prices)		Price Index
December 31, 2013		$ 66,900	100
December 31, 2014		103,194	117
December 31, 2015		110,940	129
December 31, 2016		124,887	133
December 31, 2017		115,787	139

Use the dollar-value LIFO method to compute the ending inventory for Novak Company for 2013 through 2017.

Solutions

Expert Solution

Compute the ending inventory for Novack Company for 2013 through 2017 using the dollar-valueLIFO method

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

December 31,	Ending inventory(a)	Price index(b)	Base year(a/b)	Change from prior year
2013	66900	1	66900
2014	103194	1.17	88200	21300
2015	110940	1.29	86000	-2200
2016	124887	1.33	93900	7900
2017	115787	1.39	83300	-10600

Ending inventory - dollar value : LIFO

2013	66900	66,900
	Total	66,900

2014	66900X1	66,900
	21300X1.17	24,921
	Total	91,821


2015	66900X1	66,900
	19100X1.17	22,347
	Total	89,247


2016	66900X1	66900
	19100X1.17	22,347
	7900X1.33	10,507
	Total	99754

2017	66900X1	66900
	16400X1.17	19,188
	Total	86088

ekkarill92 answered 1 year ago

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