Dollar-Value LIFO On January 1, 2015, Sato Company adopted the dollar-value LIFO method of inventory costing. Sato's ending inventory records appear as follows: Year Current Cost 2015 2016 2017 2018 $39,400 53,700 56,680 67,200 Year Ending inventory 2015 $ 39,400 2016 S 2017 $ 2018 $ Required: Compute the ending inventory for the years 2015, 2016, 2017, and 2018, using the dollar-value LIFO method. Do not round your intermediate calculations. If required, round your answers to the nearest dollar. Feedback Check My Work Index X 100 120 130 140

FINANCIAL ACCOUNTING
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Dollar-Value LIFO
On January 1, 2015, Sato Company adopted the dollar-value LIFO method of inventory
costing. Sato's ending inventory records appear as follows:
Year Current Cost Index
2015
2016
2017
2018
$39,400
53,700
Feedback
56,680
67,200
Year Ending inventory
2015 $
39,400✔
2016 $
2017 $
2018 $
Required:
Compute the ending inventory for the years 2015, 2016, 2017, and 2018, using the
dollar-value LIFO method. Do not round your intermediate calculations. If required,
round your answers to the nearest dollar.
Date
12/31/15
12/31/16
X
Check My Work
You should review the calculations for dollar-value LIFO before you begin this
exercise. The following partially completed table will help you to organize the
information and calculations.
12/31/17
12/31/18
X
100
120
Ending
Inventory
at Current
Costs (given)
130
140
53,700
X
Base Year Cost Index
Current Year Cost
Index
100
120
Inventory Increase
at
Base-Year Base-Year
Costs
Costs
39,400
(Decrease) at
44,750
5,350
Relevant Cost
Index
Base-Year Cost
x Index
x
120
100
Increase
(Decrease)
at
Relevant
Current
Cost
6,420
Ending
Invento
at LIFO
39,400
45,820
50,600
Transcribed Image Text:Dollar-Value LIFO On January 1, 2015, Sato Company adopted the dollar-value LIFO method of inventory costing. Sato's ending inventory records appear as follows: Year Current Cost Index 2015 2016 2017 2018 $39,400 53,700 Feedback 56,680 67,200 Year Ending inventory 2015 $ 39,400✔ 2016 $ 2017 $ 2018 $ Required: Compute the ending inventory for the years 2015, 2016, 2017, and 2018, using the dollar-value LIFO method. Do not round your intermediate calculations. If required, round your answers to the nearest dollar. Date 12/31/15 12/31/16 X Check My Work You should review the calculations for dollar-value LIFO before you begin this exercise. The following partially completed table will help you to organize the information and calculations. 12/31/17 12/31/18 X 100 120 Ending Inventory at Current Costs (given) 130 140 53,700 X Base Year Cost Index Current Year Cost Index 100 120 Inventory Increase at Base-Year Base-Year Costs Costs 39,400 (Decrease) at 44,750 5,350 Relevant Cost Index Base-Year Cost x Index x 120 100 Increase (Decrease) at Relevant Current Cost 6,420 Ending Invento at LIFO 39,400 45,820 50,600
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