Question

The following information relates to the Gary King Company.

Date		Ending Inventory (End-of-Year Prices)				Price Index
December 31, 2016			$ 65,300			100
December 31, 2017			123,930			135
December 31, 2018			134,400			150
December 31, 2019			152,365			155
December 31, 2020			141,680			161

Use the dollar-value LIFO method to compute the ending inventory for King Company for 2016 through 2020.

			Ending Inventory
2016			$
2017			$
2018			$
2019			$
2020			$

Answer 1

Answer:

Date	Ending of Inventry	Price Index	Inventory at base year Price	Change in Inventory	Ending Inventory as per LIFO
2016	$65,300	100	$65,300		$65,300
			(65300/100*100)
2017	$123,930	135	$91,800	$26,500	$101,075
			(123930/125*100)	(91800-65300)	(65300*100%+26500*135%)
2018	$134,400	150	$89,600	-$2,200	$98,105
			(134400/150*100)	(89600-91800)	(65300*100%+(89600-65300)*135%)
2019	$152,365	155	$98,300	$8,700	$111,590
			(152365/155*100)	(98300-89600)	(65300*100%+(89600-65300)*135%)+8700*155%
2020	$141,680	161	$88,000	-$10,300	$95,945
			(141680/161*100)	(88000-98300)	(65300*100%+(88000-65300)*135%