### One-Stop Shopping Mart Inventory AccountingOne-Stop Shopping Mart began business on January 1, 2018, using the Dollar-Value LIFO method for inventory accounting. The initial "current cost" of their inventory was $800,000.To apply this method, One-Stop created a unique price index to measure inflation, setting the value at 100 on January 1, 2018.**Inventory Data:**- **January 1, 2018:** - Inventory at "Current Cost": $800,000 - Price Index: 100- **December 31, 2018:** - Inventory at "Current Cost": $990,000 - Price Index: 110- **December 31, 2019:** - Inventory at "Current Cost": $1,104,000 - Price Index: 115**Questions:****A.** 1. At what amount will One-Stop Shopping Mart report their Ending Inventory on their December 31, 2018 Balance Sheet?**B.** 1. If One-Stop, during the year ending December 31, 2019, had total inventory purchases of $3,000,000, what is the "Cost of Goods Sold" for the year ending December 31, 2019?

Dollar Value LIFO Method is a technique for valuation of closing inventory using the prices not the…

A. (1) At what amount will One-Stop Shopping Mart report their Ending Inventory on their December 31, 2018 Balance Sheet? B. (1) If One-Stop, during the year-ending December 31, 2019, had total Inventory purchases of $ 3,000,000, what is "Cost of Goods Sold" for the year ending December 31, 2019?

A. (1) At what amount will One-Stop Shopping Mart report their Ending Inventory on their December 31, 2018 Balance Sheet? B. (1) If One-Stop, during the year-ending December 31, 2019, had total Inventory purchases of $ 3,000,000, what is "Cost of Goods Sold" for the year ending December 31, 2019?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

### One-Stop Shopping Mart Inventory Accounting

One-Stop Shopping Mart began business on January 1, 2018, using the Dollar-Value LIFO method for inventory accounting. The initial "current cost" of their inventory was $800,000.

To apply this method, One-Stop created a unique price index to measure inflation, setting the value at 100 on January 1, 2018.

**Inventory Data:**

- **January 1, 2018:**
- Inventory at "Current Cost": $800,000
- Price Index: 100

- **December 31, 2018:**
- Inventory at "Current Cost": $990,000
- Price Index: 110

- **December 31, 2019:**
- Inventory at "Current Cost": $1,104,000
- Price Index: 115

**Questions:**

**A.**
1. At what amount will One-Stop Shopping Mart report their Ending Inventory on their December 31, 2018 Balance Sheet?

**B.**
1. If One-Stop, during the year ending December 31, 2019, had total inventory purchases of $3,000,000, what is the "Cost of Goods Sold" for the year ending December 31, 2019?

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