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Computing Ending Inventory Using Dollar-Value LIF On January 1 of Year 5, Bay Inc. adopted dollar-value LIFO, and its inventory priced at current costs was $36,000 at that time. The following information is available on its inventories for Ending Inventory at December 31 Year-End Index Year Year 5 $40,800 Year 6 48,000 Year 7 43,200 1.10 1.22 1.15 *Computed as: Current (year-end) price index + Base-year price index Required Compute the ending inventory on a dollar-value LIFO basis for Year 5 Year 6, and Year 7. Note: Round your final answers to the nearest whole dollar. Ending Inventory Date (End of year prices) $36.000 Price Index 1.00 Ending Inventory (Base year prices) $36,000 Inventory Price Index Layers $36,000 1.00 Ending Inventory (Dollar Value LIFO) $36,000

Computing Ending Inventory Using Dollar-Value LIF On January 1 of Year 5, Bay Inc. adopted dollar-value LIFO, and its inventory priced at current costs was $36,000 at that time. The following information is available on its inventories for Ending Inventory at December 31 Year-End Index Year Year 5 $40,800 Year 6 48,000 Year 7 43,200 1.10 1.22 1.15 *Computed as: Current (year-end) price index + Base-year price index Required Compute the ending inventory on a dollar-value LIFO basis for Year 5 Year 6, and Year 7. Note: Round your final answers to the nearest whole dollar. Ending Inventory Date (End of year prices) $36.000 Price Index 1.00 Ending Inventory (Base year prices) $36,000 Inventory Price Index Layers $36,000 1.00 Ending Inventory (Dollar Value LIFO) $36,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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AM.1105.

Computing Ending Inventory Using Dollar-Value LIFO On January 1 of Year 5, Bay Inc. adopted dollar-value LIFO, and its inventory priced at current costs was $36,000 at that time. The following information is available on its inventories for Ending Inventory Year at December 31 Year-End Index* Year 5 Year 6 $40,800 48,000 Year 7 43,200 1.10 1.22 1.15 *Computed as: Current (year-end) price index + Base-year price index Required Compute the ending inventory on a dollar-value LIFO basis for Year 5 Year 6, and Year 7. Note: Round your final answers to the nearest whole dollar. Ending Inventory Price Date (End of year prices) Index Ending Inventory (Base year prices) Year 4 $36,000 1.00 $36,000 Year 5 40,800 1.1 37,091 Inventory Price Index Layers $36,000 1.00 1.00 36,000 Ending Inventory (Dollar Value LIFO) $36,000 36,000 x 1.10 0 x $ 36000 Year 6 48.000✓ 1.22 39,344 36,000 ✔ 1.00 36.000 0 x 1.10 0x 0 x 1.22 0 x $ 36000 Year 7 43,200 1.15 37,565 ✔ 36,000 1.00 36,000✔ 0 x 1.10 0 x 0 x 1.22 0x
Transcribed Image Text:Computing Ending Inventory Using Dollar-Value LIFO On January 1 of Year 5, Bay Inc. adopted dollar-value LIFO, and its inventory priced at current costs was $36,000 at that time. The following information is available on its inventories for Ending Inventory Year at December 31 Year-End Index* Year 5 Year 6 $40,800 48,000 Year 7 43,200 1.10 1.22 1.15 *Computed as: Current (year-end) price index + Base-year price index Required Compute the ending inventory on a dollar-value LIFO basis for Year 5 Year 6, and Year 7. Note: Round your final answers to the nearest whole dollar. Ending Inventory Price Date (End of year prices) Index Ending Inventory (Base year prices) Year 4 $36,000 1.00 $36,000 Year 5 40,800 1.1 37,091 Inventory Price Index Layers $36,000 1.00 1.00 36,000 Ending Inventory (Dollar Value LIFO) $36,000 36,000 x 1.10 0 x $ 36000 Year 6 48.000✓ 1.22 39,344 36,000 ✔ 1.00 36.000 0 x 1.10 0x 0 x 1.22 0 x $ 36000 Year 7 43,200 1.15 37,565 ✔ 36,000 1.00 36,000✔ 0 x 1.10 0 x 0 x 1.22 0x
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