Question
22. Scolari Company adopted the dollar-value LIFO method on January 1, 2007, at which time
its inventory consisted of 6,000 units of Item A at $5.00 each and 3,000 units of Item B at S16.00
each. The inventory at December 31, 2007 consisted of 12,000 units of Item A and 7,000 units of
Item B. The most recent actual purchases related to these items were as follows:
ItemsPurchase Date Purchased Cost Per Unit
12/07/2007
12/11/2007
12/15/2007
2,000
10,000
10,000
$6.00
5.75
17
What is the price index for 2007 that should be computed by Scolari Company?
a. 108.33%
b. 109.59%
c. 1 1 1.05%
d. 220.51%
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Transcribed Image Text:22. Scolari Company adopted the dollar-value LIFO method on January 1, 2007, at which time its inventory consisted of 6,000 units of Item A at $5.00 each and 3,000 units of Item B at S16.00 each. The inventory at December 31, 2007 consisted of 12,000 units of Item A and 7,000 units of Item B. The most recent actual purchases related to these items were as follows: ItemsPurchase Date Purchased Cost Per Unit 12/07/2007 12/11/2007 12/15/2007 2,000 10,000 10,000 $6.00 5.75 17 What is the price index for 2007 that should be computed by Scolari Company? a. 108.33% b. 109.59% c. 1 1 1.05% d. 220.51%
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