Waterway Company cans a variety of vegetable-type soups. Recently, the company decided to value its inventories using dollar-value LIFO pools. The clerk who accounts for inventories does not understand how to value the inventory pools using this new method, so, as a private consultant, you have been asked to teach him how this new method works. He has provided you with the following information about purchases made over a 6-year period. Date Ending Inventory (End-of-Year Prices) Price Index Dec. 31, 2016 $75,200 100 Dec. 31, 2017 138,250 125 Dec. 31, 2018 135,278 143 Dec. 31, 2019 160,735 155 Dec. 31, 2020 183,867 167 Dec. 31, 2021 215,731 173 You have already explained to him how this inventory method is maintained, but he would feel better about it if you were to leave him detailed instructions explaining how these calculations are done and why he needs to put all inventories at a base-year value. Compute the ending inventory for Waterway Company for 2016 through 2021 using dollar-value LIFO.
Waterway Company cans a variety of vegetable-type soups. Recently, the company decided to value its inventories using dollar-value LIFO pools. The clerk who accounts for inventories does not understand how to value the inventory pools using this new method, so, as a private consultant, you have been asked to teach him how this new method works.
He has provided you with the following information about purchases made over a 6-year period.
|
Date
|
Ending Inventory
(End-of-Year Prices) |
Price Index
|
||||
| Dec. 31, 2016 | $75,200 | 100 | ||||
| Dec. 31, 2017 | 138,250 | 125 | ||||
| Dec. 31, 2018 | 135,278 | 143 | ||||
| Dec. 31, 2019 | 160,735 | 155 | ||||
| Dec. 31, 2020 | 183,867 | 167 | ||||
| Dec. 31, 2021 | 215,731 | 173 |
You have already explained to him how this inventory method is maintained, but he would feel better about it if you were to leave him detailed instructions explaining how these calculations are done and why he needs to put all inventories at a base-year value.
Compute the ending inventory for Waterway Company for 2016 through 2021 using dollar-value LIFO.
The procedure of purchasing, holding, utilizing, and selling a corporation's inventory is referred to as inventory management. This comprises the storage and processing of raw materials, parts, and completed goods, as well as the administration of raw materials, components, and final products.
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