Exercise 8-27 (Static) Dollar-value LIFO [LO8-8] Mercury Company has only one inventory pool. On December 31, 2024, Mercury adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $200,000. Inventory data are as follows: Year 2025 2026 2027 Ending Inventory at Year Ending Inventory at Base End Costs Date 12/31/2024 12/31/2025 Required: Compute the inventory at December 31, 2025, 2026, and 2027, using the dollar-value LIFO method. Note: Round "Year end cost index" to 2 decimal places. 12/31/2026 $ 231,000 299,000 300,000 12/31/2027 Year Costs Inventory at Year- End Cost $ 220,000 260,000 250,000 Inventory Layers Converted to Base Year Cost Year-End Cost Index = = = Ending Inventory at Base Year Cost Base Base 2025 Base 2025 2026 Base 2025 2026 2027 Inventory Layers Converted to Cost Ending Inventory at Base Year Cost Year-End Cost Index = = = = = = = Inventory Layers Converted to Cost Inventory DVL Cost $ $ $ $ 0 0 0 0
Exercise 8-27 (Static) Dollar-value LIFO [LO8-8] Mercury Company has only one inventory pool. On December 31, 2024, Mercury adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $200,000. Inventory data are as follows: Year 2025 2026 2027 Ending Inventory at Year Ending Inventory at Base End Costs Date 12/31/2024 12/31/2025 Required: Compute the inventory at December 31, 2025, 2026, and 2027, using the dollar-value LIFO method. Note: Round "Year end cost index" to 2 decimal places. 12/31/2026 $ 231,000 299,000 300,000 12/31/2027 Year Costs Inventory at Year- End Cost $ 220,000 260,000 250,000 Inventory Layers Converted to Base Year Cost Year-End Cost Index = = = Ending Inventory at Base Year Cost Base Base 2025 Base 2025 2026 Base 2025 2026 2027 Inventory Layers Converted to Cost Ending Inventory at Base Year Cost Year-End Cost Index = = = = = = = Inventory Layers Converted to Cost Inventory DVL Cost $ $ $ $ 0 0 0 0
Chapter1: Financial Statements And Business Decisions
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![Exercise 8-27 (Static) Dollar-value LIFO [LO8-8]
Mercury Company has only one inventory pool. On December 31, 2024, Mercury adopted the dollar-value LIFO inventory method. The
inventory on that date using the dollar-value LIFO method was $200,000. Inventory data are as follows:
Year
2025
2026
2027
Ending Inventory at Year- Ending Inventory at Base
End Costs
Date
12/31/2024
12/31/2025
Required:
Compute the inventory at December 31, 2025, 2026, and 2027, using the dollar-value LIFO method.
Note: Round "Year end cost index" to 2 decimal places.
12/31/2026
$ 231,000
299,000
300,000
12/31/2027
Year Costs
Inventory
at Year-
End Cost
$ 220,000
260,000
250,000
Inventory Layers Converted to Base Year Cost
Year-End
Cost
Index
=
=
Ending
Inventory at
Base Year
Cost
Base
Base
2025
Base
2025
2026
Base
2025
2026
2027
Inventory Layers Converted to Cost
Ending
Inventory at
Base Year
Cost
Year-End
Cost
Index
Inventory
Layers
Converted to
Cost
Inventory DVL
Cost
$
$
$
S
0
0
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F113170aa-f82b-4976-9ad1-7a3fb696cb71%2Fd2b756a7-4d04-4d99-b9f0-f6eea9465cfa%2Fip886iu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 8-27 (Static) Dollar-value LIFO [LO8-8]
Mercury Company has only one inventory pool. On December 31, 2024, Mercury adopted the dollar-value LIFO inventory method. The
inventory on that date using the dollar-value LIFO method was $200,000. Inventory data are as follows:
Year
2025
2026
2027
Ending Inventory at Year- Ending Inventory at Base
End Costs
Date
12/31/2024
12/31/2025
Required:
Compute the inventory at December 31, 2025, 2026, and 2027, using the dollar-value LIFO method.
Note: Round "Year end cost index" to 2 decimal places.
12/31/2026
$ 231,000
299,000
300,000
12/31/2027
Year Costs
Inventory
at Year-
End Cost
$ 220,000
260,000
250,000
Inventory Layers Converted to Base Year Cost
Year-End
Cost
Index
=
=
Ending
Inventory at
Base Year
Cost
Base
Base
2025
Base
2025
2026
Base
2025
2026
2027
Inventory Layers Converted to Cost
Ending
Inventory at
Base Year
Cost
Year-End
Cost
Index
Inventory
Layers
Converted to
Cost
Inventory DVL
Cost
$
$
$
S
0
0
0
0
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