Homework Help is Here – Start Your Trial Now!
Business
Accounting
Mercury Company has only one inventory pool. On December 31, 2024, Mercury adopted the dollar-value LIFO inventory method. Th nventory 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-End Costs $ 231,000 299,000 300,000 Ending Inventory at Base Year Costs $ 220,000 260,000 250,000 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.

Mercury Company has only one inventory pool. On December 31, 2024, Mercury adopted the dollar-value LIFO inventory method. Th nventory 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-End Costs $ 231,000 299,000 300,000 Ending Inventory at Base Year Costs $ 220,000 260,000 250,000 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.

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
Topic Video
Question

aj.5

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-End Costs $ 231,000 299,000 300,000 Date 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. 12/31/2024 12/31/2025 12/31/2026 12/31/2027 Inventory Layers Converted to Base Year Cost Ending Inventory at Base Inventory at Year- End Cost $ 200,000 $ 231,000 $ 299,000 $ 300,000 > > + Ending Inventory at Base Year Costs $ 220,000 260,000 250,000 + + Year- End Cost Index 1 1.05 1.15 1.2 > = = = 11 = Year Cost $ 200,000 $ 220,000 $ 260,000 $ 250,000 X Answer is complete but not entirely correct. Inventory Layers Converted to Cost Ending Inventory at Base Year Cost Base $ Base $ 2025 $ Base $ 2025 $ 2026 $ Base $ 2025 $ 200,000 200,000 22,000 X 200,000 22,000 X 38,000 X 200,000✔ 22,000 X X X X X X X X Year- End Cost Index 1 1 1.05 ✓E 333 1 ✓1.05 1.15 1 1.05 = 33333 = = E = = = Inventory Layers Converted to Cost $ $ $ $ $ $ $ $ 200,000 200,000 23,100 x $ 200,000 23,100 X 43,700 X $ 200,000 23,100 X Inventory DVL Cost $ 200,000 223,100 266,800
Transcribed Image Text: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-End Costs $ 231,000 299,000 300,000 Date 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. 12/31/2024 12/31/2025 12/31/2026 12/31/2027 Inventory Layers Converted to Base Year Cost Ending Inventory at Base Inventory at Year- End Cost $ 200,000 $ 231,000 $ 299,000 $ 300,000 > > + Ending Inventory at Base Year Costs $ 220,000 260,000 250,000 + + Year- End Cost Index 1 1.05 1.15 1.2 > = = = 11 = Year Cost $ 200,000 $ 220,000 $ 260,000 $ 250,000 X Answer is complete but not entirely correct. Inventory Layers Converted to Cost Ending Inventory at Base Year Cost Base $ Base $ 2025 $ Base $ 2025 $ 2026 $ Base $ 2025 $ 200,000 200,000 22,000 X 200,000 22,000 X 38,000 X 200,000✔ 22,000 X X X X X X X X Year- End Cost Index 1 1 1.05 ✓E 333 1 ✓1.05 1.15 1 1.05 = 33333 = = E = = = Inventory Layers Converted to Cost $ $ $ $ $ $ $ $ 200,000 200,000 23,100 x $ 200,000 23,100 X 43,700 X $ 200,000 23,100 X Inventory DVL Cost $ 200,000 223,100 266,800
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
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