Question

Oriole Company had January 1 inventory of $305000 when it adopted dollar-value LIFO. During the year,...

Oriole Company had January 1 inventory of $305000 when it adopted dollar-value LIFO. During the year, purchases were $1790000 and sales were $2960000. December 31 inventory at year-end prices was $443460, and the price index was 114. What is Oriole Company’s ending inventory?


A. $389000.

B. $400760.

C. $305000.

D. $443460.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Ans:B. $400760 is Correct Answer

Explanation:

Ending Inventory at base Year Price=
=443460/114*100
=389000
Real Dollar Quantity Increase in Inventory=
=389000-305000=84000
Value of this real Dollar quantity Increase in Inventory at Year End Prices
=84000*114/100
=95760
Total Inventory at the end of the year
Beginning Inventory in terms of 100 305,000
Increase during the year in terms of 114 95760
Dollar Value LIFO Inventory at the end of the year 400,760


Hope This Helped ! Let Me Know In Case of Any Queries.

Please ThumpsUp.,,

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Oriole Company adopted the dollar-value LIFO method of inventory valuation on December 31, 2019. Its inventory...
Oriole Company adopted the dollar-value LIFO method of inventory valuation on December 31, 2019. Its inventory at that date was $1105000 and the relevant price index was 100. Information regarding inventory for subsequent years is as follows: Date Inventory at Current Prices Current Price Index December 31, 2020 $1274000 107 December 31, 2021   1448000 125 December 31, 2022   1620000 130 What is the cost of the ending inventory at December 31, 2021 under dollar-value LIFO?
XYZ Company adopted the dollar value LIFO inventory method on 1/1/15. The company’s inventory on that...
XYZ Company adopted the dollar value LIFO inventory method on 1/1/15. The company’s inventory on that date was $400,000, which is considered the base LIFO layer. Additional data about the company appear below. Year December 31 inventory at end-of-year prices Price Index 1/1/2015 $400,000 100 12/31/2015 498,000 110 12/31/2016 516,000 121 Calculate ending inventory using the dollar value LIFO method at 12/31/16. SHOW ALL OF YOUR WORK.
On January 1, 2021, the National Furniture Company adopted the dollar-value LIFO method of computing inventory....
On January 1, 2021, the National Furniture Company adopted the dollar-value LIFO method of computing inventory. An internal cost index is used to convert ending inventory to base year. Inventory on January 1 was $212,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended December 31 Inventory at Year-end Costs Cost Index (Relative to Base Year) 2021 $ 285,120 1.08 2022 337,120 1.12 2023 340,400 1.15 Required: Compute inventory amounts at...
On January 1, 2018, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records...
On January 1, 2018, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information: Cost Retail Beginning inventory $ 53,250 $ 71,000 Net purchases 206,590 285,000 Net markups 9,000 Net markdowns 11,000 Net sales 268,000 Retail price index, end of year 1.04 During 2019, purchases at cost and retail were $233,135 and $333,050, respectively. Net markups, net markdowns, and net sales for the year were $6,000, $7,000, and $295,000, respectively. The retail price index...
On January 1, 2018, the Flou Company adopted the dollar-value LIFO method. The inventory value for...
On January 1, 2018, the Flou Company adopted the dollar-value LIFO method. The inventory value for its one inventory pool on this date was $490,000. Inventory data for 2018 through 2020 are as follows: Date Ending Inventory at Year-End Costs Cost Index 12/31/2018 540,600 1.06 12/31/2019 598,500 1.14 12/31/2020 638,600 1.24 Calculate the dollar-value ending inventory for each year
On January 1, 2018, the National Furniture Company adopted the dollar-value LIFO method of computing inventory....
On January 1, 2018, the National Furniture Company adopted the dollar-value LIFO method of computing inventory. An internal cost index is used to convert ending inventory to base year. Inventory on January 1 was $200,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows:                                Inventory at Cost Index Year Ended Year-end (Relative to December 31     Costs               Base Year)       2018 $259,200 1.08       2019 296,800 1.12       2020 299,000 1.15 Required: Compute inventory amounts at the...
Mets Company adopted the dollar-value LIFO inventory method at December 31, 2017 The inventory on that...
Mets Company adopted the dollar-value LIFO inventory method at December 31, 2017 The inventory on that date using the dollar-value LIFO inventory method was $90,000. Inventory data are as follows:                                           Inventory at                           Price index             Year                    year-end prices                   (base year 2016)             2017                         $240,000                                   1.00             2018                           275,000                                   1.10             2019                           300,000                                   1.20 Instructions Compute the inventory at December 31, 2018, and 2019, using the dollar-value LIFO method for each year.                                                                                                                                                             2017-
On January 1, 2021, the Coldstone Corporation adopted the dollar-value LIFO retail inventory method. Beginning inventory...
On January 1, 2021, the Coldstone Corporation adopted the dollar-value LIFO retail inventory method. Beginning inventory at cost and at retail were $110,000 and $292,950, respectively. Net purchases during the year at cost and at retail were $707,200 and $872,000, respectively. Markups during the year were $12,000. There were no markdowns. Net sales for 2021 were $866,150. The retail price index at the end of 2021 was 1.05. What is the inventory balance that Coldstone would report in its 12/31/2021...
Question 23 On December 31, 2017, Keller Company adopted the dollar-value LIFO inventory method. The inventory...
Question 23 On December 31, 2017, Keller Company adopted the dollar-value LIFO inventory method. The inventory on that date using dollar-value LIFO was $200,000. Inventory data for later years are as follows:                                           Inventory at                           Price index             Year                    year-end prices                    (base year 2017)             2018                         $294,000                                   1.05             2019                           368,000                                   1.15             2020                           390,000                                   1.25 Compute the inventory reported at December 31, 2018, 2019, and 2020, using the dollar-value LIFO method. December 31, 2018: December 31, 2019: December 31,...
On January 1, 2021, the Taylor Company adopted the dollar-value LIFO method. The inventory value for...
On January 1, 2021, the Taylor Company adopted the dollar-value LIFO method. The inventory value for its one inventory pool on this date was $300,000. Inventory data for 2021 through 2023 are as follows: Date Ending Inventory at Year-End Costs Cost Index 12/31/2021 $ 332,800 1.04 12/31/2022 368,500 1.10 12/31/2023 383,500 1.18 Required: Calculate Taylor's ending inventory for 2021, 2022, and 2023.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT