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
Olson Company adopted the dollar-value LIFO method for inventory valuation at the beginning of 2015. The...
Olson Company adopted the dollar-value LIFO method for inventory
valuation at the beginning of 2015. The following information about
the inventory at the end of each year is available from Olson's
records:
Year
Current Costs
Index
2014
$50,000
100
2015
60,000
108
2016
70,000
115
2017
73,000
125
2018
78,000
135
Required:
1. Calculate the dollar-value LIFO inventory at the end of each
year. Do not round your intermediate calculations. Round final
answers to the nearest dollar.
2015
2016
2017...
On January 1, 2018, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The following...
On January 1, 2018, the Brunswick Hat Company adopted the
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On January 1, 2021, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The following...
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$
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Net purchases
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Net markups
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Net markdowns
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Net sales
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Required:
Calculate the estimated ending inventory and cost of goods sold for
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ending inventory at cost
?
cost...
On January 1, 2018, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The following...
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129,500
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Net markups
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1.20
Required:
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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 dollar-value LIFO retail method. The following...
On January 1, 2018, the Brunswick Hat Company adopted the
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Cost
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Beginning inventory
$
73,150
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133,000
Net purchases
113,400
257,000
Net markups
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Net markdowns
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Net sales
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1.12
Required:
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Required:
Complete the below table to calculate the inventory value at the
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(Round "Year end cost index" to...
On January 1, 2018, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The following...
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Beginning inventory
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Net markups
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Net markdowns
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Net sales
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1.20
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Cost
Retail
Beginning inventory
$
81,760
$
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Net purchases
123,360
265,000
Net markups
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Net markdowns
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Net sales
238,000
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1.10
Required:
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_____
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_____
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Net sales 228,000 Retail price index, 12/31/16 1.20 Required:
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2024
454,260...
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