Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Textbook Question
Chapter 10, Problem 10.7P
Dollar-Value LIFO. LIFO Liquidation. Silvio's Taverns, Inc. adopted the dollar-value LIFO Method in 2015 Information related to Silvio's inventory follows:
| Year | Ending Inventory at End-of-Year Prices per FIFO |
Cumulative Price Index |
| 2015 | $505,000 | 100 |
| 2016 | 612,000 | 103 |
| 2017 | 645,000 | 108 |
| 2018 | 487,000 | 112 |
| 2019 | 610,000 | 119 |
Required
- a. Compute Silvio's ending inventory under the dollar-value LIFO method for the years 2015 through 2019
- b. Prepare the
journal entries for 2016 through 2019 to adjust inventory to the dollar-value LIFO basis. - c. Determine the ending balance of the LIFO reserve for 2016 through 2019.
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Chapter 10 Solutions
Intermediate Accounting
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