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. YearEndingInventoryat December 31Year-EndConversionFactor*2020$68,0001.10202180,0001.22202272,0001.15 *Computed as: Current (year-end) price index ÷ Base-year price indexCompute 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, 2020AnswerDollar-value LIFO ending inventory, 2021AnswerDollar-value LIFO ending inventory, 2022Answer Question 2Not yet answeredMarked out of 25.00 Flag questionQuestion textEstimating Inventory Using Gross Profit MethodThe following data is from Netflicks Company for 2020. Sales revenue$240,000Beginning inventory32,000Purchases160,000For each separate case a through e, estimate ending inventory.a. Markup is 50% on cost.Answerb. Markup is 60% on sales.Answerc. Markup is 25% on cost.Answerd. Markup is 40% on sales.Answere. Markup is 60% on cost.AnswerSave AnswersNext

Name: On January 1, 2020, Bay Inc. adopted dollar-value LIFO, and its invent
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Description: 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. YearEndingInventoryat December 31Year-EndConversionFactor*

As per our Q&A guidelines we are supposed to solve only question at once please post it as separate question. Thank you.Given that, inventory priced at current costs = $ 60000Computation of inventory at base year price and changes from prior year Year end Inventory at current year prices Price index Inventory at base year cost Inventory changes from prior years 1 jan 2020 60000 1 60000 60000 31 jan 2020 68000 1.1 61818 1818 31 jan 2021 80000 1.22 65574 3756 31 jan 2022 72000 1.15 62609 -2965

Answered: On January 1, 2020, Bay Inc. adopted…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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

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Marked out of 25.00

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Question text

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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