Homework Help is Here – Start Your Trial Now!
Business
Accounting
Computing Ending Inventory using Dollar-Value LIFO On January 1, 2020, Bay Inc. adopted dollar-value LIFO, and its inventory priced at current costs was $57,000. The following information is available on its inventories for 2020 through 2022. Ending Year-End Inventory Conversion Year at December 31 Factor* 2020 $64,600 1.10 2021 76,000 1.22 2022 68,400 1.15 *Computed as: Current (year-end) price index + Base-year price index Compute the ending inventory on a dollar-value LIFO basis for each year, 2020 through 2022. Note: Do not round until your final answer. Round your final answer to the nearest whole dollar. Dollar-value LIFO ending inventory, 2020 $ Dollar-value LIFO ending inventory, 2021 $ Dollar-value LIFO ending inventory, 2022 $

Computing Ending Inventory using Dollar-Value LIFO On January 1, 2020, Bay Inc. adopted dollar-value LIFO, and its inventory priced at current costs was $57,000. The following information is available on its inventories for 2020 through 2022. Ending Year-End Inventory Conversion Year at December 31 Factor* 2020 $64,600 1.10 2021 76,000 1.22 2022 68,400 1.15 *Computed as: Current (year-end) price index + Base-year price index Compute the ending inventory on a dollar-value LIFO basis for each year, 2020 through 2022. Note: Do not round until your final answer. Round your final answer to the nearest whole dollar. Dollar-value LIFO ending inventory, 2020 $ Dollar-value LIFO ending inventory, 2021 $ Dollar-value LIFO ending inventory, 2022 $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

I have seen similar problems and their answers but do not understand how they came up with the amounts added. Thank you.

Computing Ending Inventory using Dollar-Value LIFO On January 1, 2020, Bay Inc. adopted dollar-value LIFO, and its inventory priced at current costs was $57,000. The following information is available on its inventories for 2020 through 2022. Ending Year-End Inventory Conversion Year at December 31 Factor* 2020 $64,600 1.10 2021 76,000 1.22 2022 68,400 1.15 *Computed as: Current (year-end) price index ÷ Base-year price index Compute the ending inventory on a dollar-value LIFO basis for each year, 2020 through 2022. Note: Do not round until your final answer. Round your final answer to the nearest whole dollar. Dollar-value LIFO ending inventory, 2020 $ Dollar-value LIFO ending inventory, 2021 $ Dollar-value LIFO ending inventory, 2022 $
Transcribed Image Text:Computing Ending Inventory using Dollar-Value LIFO On January 1, 2020, Bay Inc. adopted dollar-value LIFO, and its inventory priced at current costs was $57,000. The following information is available on its inventories for 2020 through 2022. Ending Year-End Inventory Conversion Year at December 31 Factor* 2020 $64,600 1.10 2021 76,000 1.22 2022 68,400 1.15 *Computed as: Current (year-end) price index ÷ Base-year price index Compute the ending inventory on a dollar-value LIFO basis for each year, 2020 through 2022. Note: Do not round until your final answer. Round your final answer to the nearest whole dollar. Dollar-value LIFO ending inventory, 2020 $ Dollar-value LIFO ending inventory, 2021 $ Dollar-value LIFO ending inventory, 2022 $
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Personal Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS