The dollar-value LIFO method was adopted by Enya Corp. on January 1, 2020. Its inventory on that date was $160,000. On December 31, 2020, the inventory at prices existing on that date amounted to $140,000. The price level at January 1, 2020, was 100, and the price level at December 31, 2020, was 112. Instructions a. Compute the amount of the inventory at December 31, 2020, under the dollar-value LIFO method. b. On December 31, 2021, the inventory at prices existing on that date was $172,500, and the price level was 115. Compute the inventory on that date under the dollar-value LIFO method.
The dollar-value LIFO method was adopted by Enya Corp. on January 1, 2020. Its inventory on that date was $160,000. On December 31, 2020, the inventory at prices existing on that date amounted to $140,000. The price level at January 1, 2020, was 100, and the price level at December 31, 2020, was 112. Instructions a. Compute the amount of the inventory at December 31, 2020, under the dollar-value LIFO method. b. On December 31, 2021, the inventory at prices existing on that date was $172,500, and the price level was 115. Compute the inventory on that date under the dollar-value LIFO method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
The dollar-value LIFO method was adopted by Enya Corp. on January 1, 2020. Its inventory on that date was $160,000. On December 31, 2020, the inventory at prices existing on that date amounted to $140,000. The price level at January 1, 2020, was 100, and the price level at December 31, 2020, was 112.
Instructions
a. Compute the amount of the inventory at December 31, 2020, under the dollar-value LIFO method.
b. On December 31, 2021, the inventory at prices existing on that date was $172,500, and the price level was 115. Compute the inventory on that date under the dollar-value LIFO method.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education