Dollar-Value LIFOOn January 1, 2015, Sato Company adopted the dollar-value LIFO method of inventorycosting. Sato's ending inventory records appear as follows:Year Current Cost Index2015201620172018$39,40053,700Feedback56,68067,200Year Ending inventory2015 $39,400✔2016 $2017 $2018 $Required:Compute the ending inventory for the years 2015, 2016, 2017, and 2018, using thedollar-value LIFO method. Do not round your intermediate calculations. If required,round your answers to the nearest dollar.Date12/31/1512/31/16XCheck My WorkYou should review the calculations for dollar-value LIFO before you begin thisexercise. The following partially completed table will help you to organize theinformation and calculations.12/31/1712/31/18X100120EndingInventoryat CurrentCosts (given)13014053,700XBase Year Cost IndexCurrent Year CostIndex100120Inventory IncreaseatBase-Year Base-YearCostsCosts39,400(Decrease) at44,7505,350Relevant CostIndexBase-Year Costx Indexx120100Increase(Decrease)atRelevantCurrentCost6,420EndingInventoat LIFO39,40045,82050,600

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Description: Dollar-Value LIFOOn January 1, 2015, Sato Company adopted the dollar-value LIFO method of inventorycosting. Sato's ending inventory records appear as follows:Year Current Cost Index2015201620172018$39,40053,700Feedback56,68067,200Year Ending invento

The inventory can be valued using various methods as FIFO, LIFO and average method. LIFO stands for…

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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 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

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

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 14RE: On January 1 of Year 1, Dorso Company adopted the dollar-value LIFO method of inventory costing....

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

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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Dollar-Value LIFO Kwestel Company adopted the dollar-value LIFO method for inventory valuation at the beginning of 2015. The following information about the inventory at the end of each year is available from Kwestels records: Required: Calculate the dollar-value LIFO inventory at the end of each year. Round to the nearest dollar.
Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is the cost of ending inventory under FIFO at April 30? a. $32,500 b. $38,400 c. $63,600 d. $69,500
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