On January 1, 2020, Bay Inc. adopted dollar-value LIFO, and its inventory priced at current costs was $60,000. The following information is available on its inventories for 2020 through 2022. Year Ending Inventory at December 31 Year-End Conversion Factor* 2020 $68,000 1.10 2021 80,000 1.22 2022 72,000 1.15 *Computed as: Current (year-end) price index ÷ Base-year price index Compute the ending inventory on a dollar-value LIFO basis for each year, 2020 through 2022. Note: Do not round until your final answer. Round your final answer to the nearest whole dollar. Dollar-value LIFO ending inventory, 2020 Answer Dollar-value LIFO ending inventory, 2021 Answer Dollar-value LIFO ending inventory, 2022 Answer
On January 1, 2020, Bay Inc. adopted dollar-value LIFO, and its inventory priced at current costs was $60,000. The following information is available on its inventories for 2020 through 2022. Year Ending Inventory at December 31 Year-End Conversion Factor* 2020 $68,000 1.10 2021 80,000 1.22 2022 72,000 1.15 *Computed as: Current (year-end) price index ÷ Base-year price index Compute the ending inventory on a dollar-value LIFO basis for each year, 2020 through 2022. Note: Do not round until your final answer. Round your final answer to the nearest whole dollar. Dollar-value LIFO ending inventory, 2020 Answer Dollar-value LIFO ending inventory, 2021 Answer Dollar-value LIFO ending inventory, 2022 Answer
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
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 3RE: Refer to RE22-2. Assume the pretax cumulative effect adjustment is 50,000. Prepare the journal entry...
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On January 1, 2020, Bay Inc. adopted dollar-value LIFO, and its inventory priced at current costs was $60,000. The following information is available on its inventories for 2020 through 2022.
Year |
Ending Inventory at December 31 |
Year-End Conversion Factor* |
|---|---|---|
| 2020 | $68,000 | 1.10 |
| 2021 | 80,000 | 1.22 |
| 2022 | 72,000 | 1.15 |
*Computed as: Current (year-end) price index ÷ Base-year price index
Compute the ending inventory on a dollar-value LIFO basis for each year, 2020 through 2022.
Note: Do not round until your final answer. Round your final answer to the nearest whole dollar.
| Dollar-value LIFO ending inventory, 2020 | Answer |
| Dollar-value LIFO ending inventory, 2021 | Answer |
| Dollar-value LIFO ending inventory, 2022 | Answer |
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Estimating Inventory Using Gross Profit Method
The following data is from Netflicks Company for 2020.
| Sales revenue | $240,000 |
| Beginning inventory | 32,000 |
| Purchases | 160,000 |
For each separate case a through e, estimate ending inventory.
| a. Markup is 50% on cost. | Answer |
| b. Markup is 60% on sales. | Answer |
| c. Markup is 25% on cost. | Answer |
| d. Markup is 40% on sales. | Answer |
| e. Markup is 60% on cost. | Answer |
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