Question
In: Accounting
Problem 4 Frederick Company adopted the dollar-value LIFO method on January 1, 2015 (using internal price...
Problem 4
Frederick Company adopted the dollar-value LIFO method on January 1, 2015 (using internal price indexes and multiple pools). The following data are available for inventory pool A for the 2 years following adoption of LIFO.
At Base- At Current- Price
Inventory Year Cost Year Cost Index
1/1/15 $100,000 $100,000 100
12/31/15 120,000 126,000 105
12/31/16 128,000 143,360 112
Using the dollar-value LIFO method, at what amount should the inventory be reported at December 31, 2016?
Problem 4
Computation of price indexes:
|
12/31/15 |
||
|
12/31/16 |
||
Dollar-value LIFO inventory 12/31/15:
|
Dollar-value LIFO inventory |
Dollar-value LIFO inventory 12/31/16:
|
Dollar-value LIFO inventory |
Solutions
Expert Solution
31-12-2015
$ 1,20,000 / 1.05 = $ 1,14,286
$ 1,00,000 * 1.00 = $ 1,00,000
$ 14,286 * 1.05 = $ 15,000
$ 1,15,000
**( $ 1,14,286 - $ 1,00,000 = $ 14,286 )
31-12-2016
$ 1,28,000 / 1.12 = $ 1,14,286
$ 1,00,000 * 1.00 = $ 1,00,000
$ 14,286 * 1.05 = $ 15,000
$ 2,300 * 1.12 = $ 0
$ 1,15,000
**( $ 1,14,286 - $ 1,14,286 = $ 0 )
ekkarill92 answered 1 year agoRelated Solutions
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Year
Current Costs
Index
2014
$50,000
100
2015
60,000
108
2016
70,000
115
2017
73,000
125
2018
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135
Required:
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year. Do not round your intermediate calculations. Round final
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2015
2016
2017...
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Net markdowns
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ending inventory at cost
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171000
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Ending inventory at cost
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On January 1, 2018, the Brunswick Hat Company adopted the
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$
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Net purchases
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Net markups
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Net markdowns
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Complete the below table to calculate the inventory value at the
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(Round "Year end cost index" to...
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Net markups
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Net markdowns
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Net sales
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Beginning inventory
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Net purchases
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Net markups
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Net markdowns
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Net sales
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1.10
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_____
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