A-7 Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value LIFO inventory method. Theinventory on that date using the dollar-value LIFO method was $202,000. Inventory data are as follows:Year202220232024DateEnding Inventory atYear-End Costs$235,200305,900307,200Required:Compute the inventory at December 31, 2022, 2023, and 2024, using the dollar-value LIFO method. (Round "Year end cost index" to2 decimal places.)12/31/202112/31/202212/31/202312/31/2024Inventory atYear-End CostInventory Layers Converted to Base Year Cost$ 202,000$ 235,200Ending Inventory atBase Year Costs.$224,000$ 305,900$ 307,200266,000256,000Year-EndCostIndex11.051.151.2=InventoryLayers at BaseYear Cost$ 202,000= $= $= $Inventory Layers Converted to CostInventoryLayers at BaseYear CostBase $224,000 Base $2022 $266,000 Base $2022 $2023 $256,000 Base $2022 $20232024202,000202,00022,000202,00022,00042,000202,00022,000Year-EndCostIndex======InventoryLayersConverted toCostInventory DVLCost$$$$0000

Name: A-7 Mercury Company has only one inventory pool. On December 31, 2021,
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Description: A-7 Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value LIFO inventory method. Theinventory on that date using the dollar-value LIFO method was $202,000. Inventory data are as follows:Year202220232024Da

The inventory can be valued using various methods as FIFO, LIFO and average method. LIFO method…

Answered: tory on that date using the…

Business

Accounting

tory on that date using the dollar-value LIFO methc Ending Inventory at Year-End Costs r 2 34 $235,200 305,900 307,200 Ending Inventory Base Year Costs $224,000 266,000 256,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

A-7

Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value LIFO inventory method. The
inventory on that date using the dollar-value LIFO method was $202,000. Inventory data are as follows:
Year
2022
2023
2024
Date
Ending Inventory at
Year-End Costs
$235,200
305,900
307,200
Required:
Compute the inventory at December 31, 2022, 2023, and 2024, using the dollar-value LIFO method. (Round "Year end cost index" to
2 decimal places.)
12/31/2021
12/31/2022
12/31/2023
12/31/2024
Inventory at
Year-End Cost
Inventory Layers Converted to Base Year Cost
$ 202,000
$ 235,200
Ending Inventory at
Base Year Costs.
$224,000
$ 305,900
$ 307,200
266,000
256,000
Year-End
Cost
Index
1
1.05
1.15
1.2
=
Inventory
Layers at Base
Year Cost
$ 202,000
= $
= $
= $
Inventory Layers Converted to Cost
Inventory
Layers at Base
Year Cost
Base $
224,000 Base $
2022 $
266,000 Base $
2022 $
2023 $
256,000 Base $
2022 $
2023
2024
202,000
202,000
22,000
202,000
22,000
42,000
202,000
22,000
Year-End
Cost
Index
=
=
=
=
=
=
Inventory
Layers
Converted to
Cost
Inventory DVL
Cost
$
$
$
$
0
0
0
0

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