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Silver Quick adopted LIFO in January 1, 2019, when the inventory had a FIFO cost of $180,000 ($10 per unit). At the end of 2019, inventory consisted of 18,750 units at $12 per unit, and the ending inventory for 2020 consisted of 20,000 units at $15 per unit. Required: a. b. Calculate the cost index to be used for 2019 and 2020 using the link-chain method. Compute the ending inventory for 2019 and 2020 using dollar-value LIFO.

Silver Quick adopted LIFO in January 1, 2019, when the inventory had a FIFO cost of $180,000 ($10 per unit). At the end of 2019, inventory consisted of 18,750 units at $12 per unit, and the ending inventory for 2020 consisted of 20,000 units at $15 per unit. Required: a. b. Calculate the cost index to be used for 2019 and 2020 using the link-chain method. Compute the ending inventory for 2019 and 2020 using dollar-value LIFO.

FINANCIAL ACCOUNTING
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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Silver Quick adopted LIFO in January 1, 2019, when the inventory had a FIFO cost of $180,000 ($10 per unit). At the end of 2019, inventory consisted of 18,750 units at $12 per unit, and the ending inventory for 2020 consisted of 20,000 units at $15 per unit. Required: a. b. Calculate the cost index to be used for 2019 and 2020 using the link-chain method. Compute the ending inventory for 2019 and 2020 using dollar-value LIFO.
Transcribed Image Text:Silver Quick adopted LIFO in January 1, 2019, when the inventory had a FIFO cost of $180,000 ($10 per unit). At the end of 2019, inventory consisted of 18,750 units at $12 per unit, and the ending inventory for 2020 consisted of 20,000 units at $15 per unit. Required: a. b. Calculate the cost index to be used for 2019 and 2020 using the link-chain method. Compute the ending inventory for 2019 and 2020 using dollar-value LIFO.
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