Question

Presented below is information related to Coronado Corporation for the last 3 years.

				Base-Year Cost				Current-Year Cost
Item		Quantities in Ending Inventories		Unit Cost		Amount		Unit Cost		Amount
December 31, 2019
A		10,200		$2.00		$20,400		$2.20		$22,440
B		6,400		3.00		19,200		3.55		22,720
C		4,200		5.00		21,000		5.40		22,680
				Totals		$60,600				$67,840
December 31, 2020
A		10,200		$2.00		$20,400		$2.60		$26,520
B		8,000		3.00		24,000		3.75		30,000
C		6,400		5.00		32,000		6.40		40,960
				Totals		$76,400				$97,480
December 31, 2021
A		9,200		$2.00		$18,400		$2.70		$24,840
B		9,200		3.00		27,600		4.00		36,800
C		6,400		5.00		32,000		6.20		39,680
				Totals		$78,000				$101,320

Compute indexes. (Round price index to 2 decimal places, e.g. 1.62.)

		2019		2020		2021
Index

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Compute the ending inventories under the dollar-value LIFO method for 2019, 2020, and 2021. The base period is January 1, 2019, and the beginning inventory cost at that date was $41,200. (Round answers to 0 decimal places, e.g. 5,620.)

		2019		2020		2021
Ending Inventories		$		$		$

Answer 1

Answer:

Part 1

	Dec 31, 2019	Dec 31, 2020	Dec 31, 2021
Current Year cost	67840	97480	101320
Divided by: Base year cost	60600	76400	78000
Index	1.12	1.28	1.30

Part 2

Inventory value Using Dollars value LIFO Method
		Inventory at base price	Multiply by: Price Index	Inventory Value
For Year 2019
Layer 1		41200	1.00	41200
Layer 2	Increase in Inventory (60600-41200)	19400	1.12	21728
Inventory value at end of 2019				$            62928
For Year 2020
Layer 1		41200	1.00	41200
Layer 2		19400	1.12	21728
Layer 3	Increase in Inventory (76400-60600)	15800	1.28	20224
Inventory value at end of 2020				$            83152
For Year 2021
Layer 1		41200	1.00	41200
Layer 2		19400	1.12	21728
Layer 3		15800	1.28	20224
Layer 4	Increase in Inventory (78000-76400)	1,600	1.30	2,080
Inventory value at end of 2021				$            85232