Question

Pronghorn Company adopted the dollar-value LIFO method on January 1, 2017 (using internal price indexes and...

Pronghorn Company adopted the dollar-value LIFO method on January 1, 2017 (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
1/1/17 $201,600 $201,600
12/31/17 248,900 273,790
12/31/18 255,500 291,270


Computing an internal price index and using the dollar-value LIFO method, at what amount should the inventory be reported at December 31, 2018?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution:

Computation of Price index and change from prior year - Pronghorn Company
Year Inventory at end of year prices Price index (Percentage) Inventory at base year prices Change from Prior Years
2016 $201,600.00 100 $201,600 $0
2017 $273,790.00 110 $248,900 $47,300
2018 $291,270.00 114 $255,500 $6,600
Computation of dollar value inventory - LIFO
Particulars Amount
December 31, 2018:
$201,600*$1 $201,600
$47,300*1.10 $52,030
$6,600*1.14 $7,524
December 31, 2018: $261,154
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
4. Hampton Company adopted the dollar-value LIFO method on January 1, 2017 (using internal price indexes...
4. Hampton Company adopted the dollar-value LIFO method on January 1, 2017 (using internal price indexes and multiple pools). The following data are available for inventory pool A for the 2 years following adoption of LIFO. At Base-                        At Current                                            Inventory                       Year Cost                  1/1/2019                    $284,000                                   $284,000         1                 12/31/2019                     258,000                                     268,320         1.04   12/31/2020                     297,000                                     302,940         1.02 Computing an internal price index and using the dollar-value LIFO method, at what amount should the inventory be reported at December 31, 2020? (4)  Hint. You must first calculate the price index.
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...
Santa Cruz Company has used the dollar-value LIFO method since January 1, 2017. Santa Cruz uses...
Santa Cruz Company has used the dollar-value LIFO method since January 1, 2017. Santa Cruz uses internal price indexes and multiple pools. At the end of calendar year 2018, the following data are available for Santa Cruz's inventory pool A. Inventory At Base-Year Cost At Current-Year Cost January 1, 2017 $1,000,000 $1,000,000 December 31, 2017 1,230,000 1,353,000 December 31, 2018 1,280,000 1,459,200 Computing an internal price index and using the dollar-value LIFO method, at what amount should the inventory in...
On January 1, 2020, Tamarisk Wholesalers Inc. adopted the dollar-value LIFO inventory method for income tax...
On January 1, 2020, Tamarisk Wholesalers Inc. adopted the dollar-value LIFO inventory method for income tax and external financial reporting purposes. However, Tamarisk continued to use the FIFO inventory method for internal accounting and management purposes. In applying the LIFO method, Tamarisk uses internal conversion price indexes and the multiple pools approach under which substantially identical inventory items are grouped into LIFO inventory pools. The following data were available for inventory pool no. 1, which comprises products A and B,...
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...
On January 1, 2021, the Haskins Company adopted the dollar-value LIFO method for its one inventory...
On January 1, 2021, the Haskins Company adopted the dollar-value LIFO method for its one inventory pool. The pool’s value on this date was $670,000. The 2021 and 2022 ending inventory valued at year-end costs were $714,000 and $795,000, respectively. The appropriate cost indexes are 1.05 for 2021 and 1.06 for 2022. Required: Complete the below table to calculate the inventory value at the end of 2021 and 2022 using the dollar-value LIFO method. (Round "Year end cost index" to...
On January 1, 2018, the Haskins Company adopted the dollar-value LIFO method for its one inventory...
On January 1, 2018, the Haskins Company adopted the dollar-value LIFO method for its one inventory pool. The pool’s value on this date was $700,000. The 2018 and 2019 ending inventory valued at year-end costs were $741,000 and $819,000, respectively. The appropriate cost indexes are 1.04 for 2018 and 1.05 for 2019. Required: Complete the below table to calculate the inventory value at the end of 2018 and 2019 using the dollar-value LIFO method. (Round "Year end cost index" to...
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, 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 $400,000. Inventory data for 2021 through 2023 are as follows: Date Ending Inventory at Year-End Costs Cost Index 12/31/2021 $ 441,000 1.05 12/31/2022 487,200 1.12 12/31/2023 510,000 1.2 Required: Calculate Taylor's ending inventory for 2021, 2022, and 2023 Inventory Layers Converted to Base Year Cost Inventory Layers Converted to Cost Inventory DVL Cost Date Inventory at...
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-
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT