Sheffield Corporation began operations on December 1, 2024. The only inventory transaction in 2024 was the purchase of inventory on December 10, 2024, at a cost of $24 per unit. None of this inventory was sold in 2024. Relevant information is as follows. Ending inventory units December 31, 2024 December 31, 2025, by purchase date December 2, 2025 July 20, 2025 March 15 July 20 September 4 December 2 During the year, the following purchases and sales were made. Purchases 390 units at $29 390 units 290 units at 30 at 190 units at 34 190 36 50 190 240 Sales April 10 August 20 November 18 December 12 290 390 240 290
Sheffield Corporation began operations on December 1, 2024. The only inventory transaction in 2024 was the purchase of inventory on December 10, 2024, at a cost of $24 per unit. None of this inventory was sold in 2024. Relevant information is as follows. Ending inventory units December 31, 2024 December 31, 2025, by purchase date December 2, 2025 July 20, 2025 March 15 July 20 September 4 December 2 During the year, the following purchases and sales were made. Purchases 390 units at $29 390 units 290 units at 30 at 190 units at 34 190 36 50 190 240 Sales April 10 August 20 November 18 December 12 290 390 240 290
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Transcribed Image Text:(b1)
Calculate the price index for 2025. Assume that the December 2, 2025, purchase cost is the current cost of inventory. (Hint: The
beginning inventory is the base layer priced at $24 per unit.) (Round answer to 4 decimal places, e.g. 2.7653.)
Price index
(b2)
1.5
Determine ending inventory using dollar-value LIFO. Assume that the December 2, 2025, purchase cost is the current cost of
inventory. (Hint: The beginning inventory is the base layer priced at $24 per unit.) (Round answer to O decimal places, e.g. 2,760.)
Ending inventory at dollar-value LIFO $
Transcribed Image Text:Sheffield Corporation began operations on December 1, 2024. The only inventory transaction in 2024 was the purchase of inventory
on December 10, 2024, at a cost of $24 per unit. None of this inventory was sold in 2024. Relevant information is as follows.
Ending inventory units
December 31, 2024
December 31, 2025, by purchase date
December 2, 2025
July 20, 2025
March 15
July 20
September 4
December 2
During the year, the following purchases and sales were made.
Purchases
390 units at $29
390 units at 30
290 units
190 units at
at 34
190
36
50
190
240
Sales
April 10
August 20
November 18
December 12
290
390
240
290
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