The Genworth Company adopted the dollar-valueLIFO method on January 1, 2021 when theinventory value of its one inventory pool was$594,000. The company decided to use anexternal index, the Consumer Price Index (CPI), toadjust for changes in the cost level. On January 1,2021, the CPI was 240. On December 31, 2021,inventory valued at year-end cost was $672,000and the CPI was 252. Required: Calculate theinventory value at the end of 2021 using thedollar-value LIFO method.

Inventory at the end: It refers to the stock in hand at the end of the year and reported in the…

The Genworth Company adopted the dollar-valu LIFO method on January 1, 2021 when the inventory value of its one inventory pool was $594,000. The company decided to use an external index, the Consumer Price Index (CPI), t adjust for changes in the cost level. On January 2021, the CPI was 240. On December 31, 2021, inventory valued at year-end cost was $672,000 and the CPI was 252 Required: Calculate the

The Genworth Company adopted the dollar-valu LIFO method on January 1, 2021 when the inventory value of its one inventory pool was $594,000. The company decided to use an external index, the Consumer Price Index (CPI), t adjust for changes in the cost level. On January 2021, the CPI was 240. On December 31, 2021, inventory valued at year-end cost was $672,000 and the CPI was 252 Required: Calculate the

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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Crane Company had a January 1 inventory of $298000 when it adopted dollar-value LIFO. During the year, purchases were $1760000 and sales were $3040000. December 31 inventory at year-end prices was $390880, and the price index was 112. What would be reported for Crane Company's ending inventory? a) $355120 b)$349000 c) $390880 d)$327800
Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2024. On that date, the cost of the inventory on hand was $22,000 and its retail value was $27,500. Information for 2024 and 2025 is as follows: Date 12/31/2024 12/31/2025 Ending Inventory Retail Price at Retail $ 36,000 $ 39,000 Required: 1. What is the cost-to-retail percentage for the inventory on hand at 1/1/2024? 2. Calculate the inventory value at the end of 2024 and 2025 using the dollar-value LIFO retail method. Required 1 Required 2 Index 1.25 1.30 Ending inventory Complete this question by entering your answers in the tabs below. 23,092 $ Cost-to-Retail Percentage 84% 854 Answer is complete but not entirely correct. Calculate the inventory value at the end of 2024 and 2025 using the dollar-value LIFO retail method. Note: Round your answers to the nearest whole dollar amount. 2024 2025 24,112
Tamarisk Company had ending inventory at end-of-year cost of $116,900 at December 31, 2016; $143,640 at December 31, 2017; and $153,468 at December 31, 2018. The year-end price indexes were 100 at 12/31/16, 114 at 12/31/17, and 116 at 12/31/18.Compute the ending inventory for Tamarisk Company for 2016 through 2018 using the dollar-value LIFO method. 2016 2017 2018 Ending Inventory $ $ $
Vaughn Manufacturing began using dollar-value LIFO for costing its inventory two years ago. The ending inventory for the past two years in end-of-year dollars was $287000 and $448000 and the year-end price indices were 1.0 and 1.2, respectively. Assuming the current inventory at end of year prices equals $644000 and the index for the current year is 1.25, what is the ending inventory using dollar-value LIFO? (Round intermediate calculations and final answer to 0 decimal places, eg. 10,000.) O $571684. O $534184. O $560884. O $567934.
Hsieh Company adopted the dollar-value LIFO method on January 1, 2020 (using internal price indexes and multiplepools). The following data are available for inventory pool A for the 2 years following adoption of LIFO:At Base- At CurrentInventory Year Cost Year Cost1/1/2020 $334,000 $334,00012/31/2020 361,000 375,44012/31/2021 412,000 449,080
Metlock Corporation adopted the dollar-value LIFO retail inventory method on January 1, 2024. At that time the inventory had a cost of $43,000 and a retail price of $100,000. The following information is available. Year-End Inventory at Retail Current Year Cost-Retail% Year-End Price Index 2024 $127,200 59% 106 2025 149,850 62% 111 2026 128,800 63% 115 2027 165,000 60% 125 The price index at January 1, 2024, is 100. Compute the ending inventory at December 31 of the years 2024-2027. (Round ratios for computational purposes to O decimal places, e.g. 78% and final answers to O decimal places, e.g. 28,987.) Ending inventory $ 2024 $ 2025 2026 $ $ 201
Sunland Company adopted the dollar-value LIFO method of inventory valuation on December 31, 2019. Its inventory at that date was $1109000 and the relevant price index was 100. Information regarding inventory for subsequent years is as follows: Date December 31, 2020 December 31, 2021 December 31, 2022 Inventory at Current Prices $1285000 1460000 1625000 Current Price Index 106 124 129 What is the cost of the ending inventory at December 31, 2021 under dollar-value LIFO?
Webster Products, Inc., adopted the dollar-value LIFO method of determining inventory costs for financial and income tax reporting on January 1, 2021. Webster continues to use the FIFO method for internal decision-making purposes. Webster's FIFO inventories at December 31, 2021, 2022, and 2023, were $300.000, $412.500, and $585,000, respectively. Internally generated cost indexes are used to convert FIFO inventory amounts to dollar-value LIFO amounts. Webster estimated these indexes as follows: 2021 2022 2823 1.00 1.25 1.50 Required: 1. Determine Webster's dollar-value LIFO inventory at December 31, 2022 and 2023. 2. Will Webster account for the change (a) retrospectively or (b) prospectively? 1. LIFO inventory at 2022 LIFO inventory at 2023 2. Webster account for the change
Crane Company adopted the dollar-value LIFO inventory method on December 31, 2020. Crane's entire inventory constitutes a single pool. On December 31, 2020, the inventory was $968000 under the dollar- value LIFO method. Inventory data for 2021 are as follows: 12/31/21 inventory at year-end prices $ 1300000 Relevant price index at year end (base year 2020) 108 Using dollar value LIFO, Crane's inventory at December 31, 2021 is (Round intermediate calculations and final answer to 0 decimal places, e.g. 10,000.) $1300000. $1203704. $1222560. $1045440.
Mercury Company has only one inventory pool. On December 31, 2024, Mercury adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $215,000. Inventory data are as follows: Year 2025 2026 2027 Ending Inventory at Year-End Costs $ 262,500 350,750 354,000 Ending Inventory at Base Year Costs $ 250,000 305,000 295,000 Required: Compute the inventory at December 31, 2025, 2026, and 2027, using the dollar-value LIFO method. Note: Round "Year end cost index" to 2 decimal places. Inventory Layers Converted to Base Year Cost Inventory Layers Converted to Cost Inventory at Date Year-End Cost Year-End Cost Index 12/31/2024 12/31/2025 12/31/2026 = Inventory DVL Cost Ending Inventory at Base Year Ending Inventory at Base Year Year-End Cost Index Cost Cost Inventory Layers Converted to Cost Base $ ° Base 2025 $ 0 Base 2025)
s Mercury Company has only one inventory pool. On December 31, 2024, Mercury adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $210,000. Inventory data are as follows: Year 2025 2026 2027 Date Required: Compute the inventory at December 31, 2025, 2026, and 2027, using the dollar-value LIFO method. Note: Round "Year end cost index" to 2 decimal places. 12/31/2024 12/31/2025 12/31/2026 Ending Inventory at Ending Inventory at Year-End Costs Base Year Costs $ 252,000 333,500 336,000 12/31/2027 $ 240,000 290,000 280,000 Inventory Layers Converted to Base Year Cost Inventory at Year-End Cost Year-End Cost Index = = = = Ending Inventory at Base Year Cost Base Base 2025 Base 2025 2026 Base 2025 2026 2027 Inventory Layers Converted to Cost Ending Inventory at Base Year Cost Year-End Cost Index = Inventory Layers Converted to Cost Inventory DVL Cost $ $ $ $ 0 0 0 0
4. Ashbrook Company adopted the dollar-value LIFO method on January 1, 2020 (using internal price indexes and multiple pools). The following data are available for inventory pool A for the 2 years following adoption of LIFO. Inventory At Base-Year Cost At Current-Year Cost 1/1/20 $200,000 $200,000 12/31/20 240,000 264,000 12/31/21 256,000 286,720 Computing an internal price index and using the dollar-value LIFO method, at what amount should the inventory be reported at December 31, 2021?