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Big Box Retailer began business during 2017, and decided to use the Dollar-Value LIFO Method to...

Big Box Retailer began business during 2017, and decided to use the Dollar-Value LIFO Method to account for Inventory.   On their December 31, 2017 Balance Sheet, Big Box reported an ending inventory balance of $ 2,000,000.

As of the end of 2017, Big Box scaled their price index to 100.   Various Information for Big Box Retailer is as follows:

                                             Inventory @       Price                                  Inventory Purchases

                                          “Current Cost”      Index              Year               During Year

    December 31, 2018        $ 2,400,000            120                2018             $   6,000,000

    December 31, 2019           2,250,000            125                2019                  8,000,000

A. At what amount will Big-Box Retailer report their Ending Inventory on their December 31, 2018 Balance Sheet?

B. What is the “Cost of Goods Sold” reported by Big Box Retailer for their fiscal year ending December 31, 2018?

C. At what amount will Big-Box Retailer report their Ending Inventory on their December 31, 2019 Balance Sheet ?

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ekkarill92 answered 1 year ago
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