On January 1, 2024, a company adopted the dollar-value LIFO method. The inventory value for its one inventory pool on this date was $400,000. Inventory data for 2024 through 2026 are as follows: Ending Inventory at Cost Date Year-End Costs Index 12/31/2024 12/31/2025 $ 441,000 487,200 1.05 1.12 510,000 1.20 12/31/2026 Required: Calculate the company's ending inventory for 2024, 2025, and 2026. Inventory Layers Converted to Base Year Cost Date Inventory at Year-End Cost Year-End Cost Index Inventory Layers at Base Year Cost 01/01/2024 12/31/2024 = Base Base 2024 12/31/2025 Base 2024 2025 12/31/2026 = Base 2024 2025 2026 Inventory Layers Converted to Cost Inventory Layers at Base Year Year-End Cost Index = Inventory Layers Converted to Cost Cost Inventory DVL Cost

On January 1, 2024, a company adopted the dollar-value LIFO method. The inventory value for its one inventory pool on this date was $400,000. Inventory data for 2024 through 2026 are as follows: Ending Inventory at Cost Date Year-End Costs Index 12/31/2024 12/31/2025 $ 441,000 487,200 1.05 1.12 510,000 1.20 12/31/2026 Required: Calculate the company's ending inventory for 2024, 2025, and 2026. Inventory Layers Converted to Base Year Cost Date Inventory at Year-End Cost Year-End Cost Index Inventory Layers at Base Year Cost 01/01/2024 12/31/2024 = Base Base 2024 12/31/2025 Base 2024 2025 12/31/2026 = Base 2024 2025 2026 Inventory Layers Converted to Cost Inventory Layers at Base Year Year-End Cost Index = Inventory Layers Converted to Cost Cost Inventory DVL Cost

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Description: On January 1, 2024, a company adopted the dollar-value LIFO method. The inventory value for its one inventory pool on this date was$400,000. Inventory data for 2024 through 2026 are as follows:Ending Inventory atDateYear-End Costs12/31/202412/31/202

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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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…
Determine ending inventory using dollar-value LIFO. Assume that the December 2, 2025, purchase cost is the current cost of the inventory.
Inventory, 12/31/25 Purchases Purchase returns Purchase discounts Gross sales (before employee discounts) Sales returns Markups Markup cancellations Markdowns Markdown cancellations Freight in Employee discounts granted Loss from breakage (normal) Cost $158,500 752,100 42,300 11,400 37400 Retail $265.000 1,357,000 75,400 1,243,000 53,600 67,200 15,200 82,200 21,500 10.500 8.800
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On January 1, 2024, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2024 and 2025 are as follows: Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 20% discount) Price Index: January 1, 2024 December 31, 2024 December 31, 2025 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 2024 2024 Cost $ 48,000 103,040 3,200 Retail $ 64,000 120,000 2025 16,000 3,200 117,850 3,800 Cost 2025 $ 115,150 3,700 Retail Required: Estimate the 2024 and 2025 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method. Note: Do not round other intermediate calculations. Round your cost-to-retail percentage calculation to 2 decimal places and final answers to the nearest whole dollar. $ 133,000 10,400 3,400 119,440 5,920 1.00 1.06 1.12
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The following inventory transactions took place for Sunland Ltd. for the year ended December 31, 2023: Date Jan 1 Jan 5 Feb 15 Mar 10 May 20 Aug 22 Sep 12 Nov 24 Dec 5 beginning inventory sale purchase purchase sale Event purchase sale purchase sale Ending inventory Unit cost of the last item sold $ CA $ Quantity 24,300 LA 6,200 32,200 9,200 40,900 14,800 20,350 9,800 17,300 Cost/ Selling Price $47.00 77.00 38.25 45.00 Calculate the ending inventory balance for Sunland Ltd., assuming the company uses a perpetual inventory system and the first-in, first-out cost formula. Also calculate the per-unit cost of the last item sold. (Round unit costs to 2 decimal places, e.g. 52.75 and ending inventory to O decimal places, e.g. 5,276.) 77.00 42.50 77.00 57.00 77.00
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