RetExercise 8-27 (Algo) Dollar-value LIFO (LO8-8]Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value LIFO inventory method. Theinventory on that date using the dollar-value LIFO method was $201,000. Inventory data are as follows:Ending Inventory atEnding Inventory atYearYear-End CostsBase Year Costs20222023$233,100302,450303,600$222,000263,000253,0002024Required:Compute the inventory at December 31, 2022, 2023, and 2024, using the dollar-value LIFO method. (Round "Year end cost index" to2 decimal places.)X Answer is not complete.Inventory Layers Converted to Base Year CostInventoryDVL CostInventory Layers Converted to CostInventoryat Year-EndCostYear-EndCostIndexInventoryLayers atBase YearInventoryLayers atBase YearCostYear-InventoryLayersConvertedto CostDateEndCostIndexCost12/31/2021220,000 X273,000 XI$1220,000 X BaseIS220,000 8220,000 S220,00012/31/20221.05$260,000Base220,000 81220,000 X2022$40,000 X1.05$42,000 X $262,00012/31/2023$368,0001.15320,000 O Base$$ 220,000 X%3D1$4220,000 X202240,000 X1.05$42,000 X2023331 000 Required:Compute the inventory at December 31, 2022, 2023, and 2024, using the dollar-value LIFO method. (Round "Year end cost index" to2 decimal places.)X Answer is not complete.Inventory Layers Converted to Base Year CostInventory Layers Converted to CostInventoryDVL CostYear-Inventoryat Year-EndCostInventoryLayers atBase YearCostInventoryLayers atBase YearCostYear-EndCostIndexInventoryLayersConvertedto CostDateEndCostIndex12/31/2021$4220,000 X1Is220,000 X Base220,000 X$220,000 X $%3D12/31/2022$273,000 X220,0001.05IS260,000 X BaseSS 220,000 x1220,000 X2022$40,000 X1.05$42,000 X $%3D262,00012/31/2023$ 368,000 X1.15320,000 X Base%3D220,000 X$220,000 X%3D2022$40,000 X1.052$42,000 X2023IS60,000 X1.1569,000 O $331,00012/31/2024$372,000 X1.20310,000 X Base220,000 X2$220,000 X2022IS40,000 X1.05$42,000 X202350,000 X1.1557,500 X20241.202$2$319,500

Name: RetExercise 8-27 (Algo) Dollar-value LIFO (LO8-8]Mercury Company has
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Description: RetExercise 8-27 (Algo) Dollar-value LIFO (LO8-8]Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value LIFO inventory method. Theinventory on that date using the dollar-value LIFO method was $201,000. In

Solution: To compute dollar value LIFO inventory, first we compute price index for every year by…

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Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $201,000. Inventory data are as follows: Ending Inventory at Year-End Costs $233,100 302,450 303,600 Ending Inventory at Year Base Year Costs 2022 2023 $222,000 263,000 253,000 2024 Required: Compute the inventory at December 31, 2022, 2023, and 2024, using the dollar-value LIFO method. (Round "Year end cost index" to 2 decimal places.)

Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $201,000. Inventory data are as follows: Ending Inventory at Year-End Costs $233,100 302,450 303,600 Ending Inventory at Year Base Year Costs 2022 2023 $222,000 263,000 253,000 2024 Required: Compute the inventory at December 31, 2022, 2023, and 2024, using the dollar-value LIFO method. (Round "Year end cost index" to 2 decimal places.)

FINANCIAL ACCOUNTING

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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A company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1, 2024, with an inventory of $120,000 Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended December 31 2024 2025 2026 2027 Date Required: Calculate inventory amounts at the end of each year Note: Round intermediate calculations and final answers to the nearest whole dollars. 01/01/2024 12/31/2024 12/31/2025 12/31/2026 Ending Inventory at Cost Index (Relative to Year-End Costs Base Year) $ 198,000 261,800 243,600 240,800 12/31/2027 Inventory Layers Converted to Base Year Cost Inventory at Year End Cost Inventory Layers at Base Year Cost Inventory Layers Converted to Cost Inventory Layers Converted to Cost Base Base 2024 Base 2024 2025 Base 1.10 1.19 1.16 1.12 2024 2025 2026 Base 2024 2025 2026 2027 Inventory Layers at Base Year Cost Inventory DVL…
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 $204,000. Inventory data are as follows: Year Ending Inventory at Year-End Costs Ending Inventory at Base Year Costs 2025 $ 239,400 $ 228,000 2026 312,800 272,000 2027 314,400 262,000 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.
Presented below is information related to Blue Company. Date Ending Inventory(End-of-Year Prices) PriceIndex December 31, 2017 $ 77,200 100 December 31, 2018 249,951 221 December 31, 2019 248,472 252 December 31, 2020 280,098 273 December 31, 2021 336,630 294 December 31, 2022 401,685 305 Compute the ending inventory for Blue Company for 2017 through 2022 using the dollar-value LIFO method. Ending Inventory 2017 $enter a dollar amount 2018 $enter a dollar amount 2019 $enter a dollar amount 2020 $enter a dollar amount 2021 $enter a dollar amount 2022 $enter a dollar amount
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