Carswell Electronics adopted the dollar-value LIFO method on January 1, 2016, when the inventory value of its one inventory pool was $720,000. The company decided to use an external index, the Consumer Price Index (CPI), to adjust for changes in the cost level. On January 1, 2016, the CPI was 240. On December 31, 2016, inventory valued at year-end cost was $880,000 and the CPI was 264. Required: Calculate the inventory value at the end of 2016 using the dollar-value LIFO method.

Q: Elster Company adopted the dollar-value LIFO method of inventory valuation on December 31, 2007. Its…

A: Date Inventory Amount $ Cost of ending inventory CPI Dec 31 , 2017 220000   100 Dec 31…

Q: Taylor Corporation has used a periodic inventory system and the LIFO cost method since its inception…

A:

Q: Hubble Space Incorporated has the following data which includes inventory conversion period or ICP…

A: Inventory conversion period is the number of days required to convert raw materials into finished…

Q: Gordon Company started operations on January 1, 2015, and has used the FIFO method of inventory…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Sandhill, Inc. uses the dollar-value LIFO method of computing its inventory. Data for the past 3…

A: Last-in-First-Out: In Last-in-first-out method, the costs of last purchase items are considered as…

Q: Herc Co.’s inventory at December 31, 2016, was $1,500,000 based on a physical count priced at cost,…

A: Inventory is a current asset to the company. It consist of goods available for sale, goods in…

Q: In 2017, Blue company adopted the Dollar-Value LIFO method for externally reporting inventory. The…

A: Dollar value LIFO method: This method is different model for the last-in first layering model. Under…

Q: During 2017, Williamson Company changed from FIFO to weighted-average inventory pricing. Pretax…

A:

Q: Berkshire Inc. uses a periodic inventory system. At the end of 2017, it missed counting some…

A: Balance sheet: This financial statement reports a company’s resources (assets) and claims of…

Q: If this were done, by how much would inventories decrease? Ass

A: Information Provided: Inventory = 20,000 COGS = 85,000 ICP (current) = 85.88 Benchmark ICP = 38

Q: The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost…

A:

Q: Sandhill Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items.…

A: Accounting ErrorAn accounting error is an error in an accounting entry that was not intentional.…

Q: Alster Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2015.…

A: Solution : Computation of inventory at base year prices and change from prior year - Alster…

Q: Walgreens Boots Alliance, Inc. reported inventories of $8,678 million and $6,076 million in its…

A: Adjustment needs to be made in the cost of goods sold for changes in inventory valuation of both…

Q: On January 1, 2016, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method.…

A:

Q: Kingston Company uses the dollar-value LIFO method of computing inventory. An external price index…

A: Dollar-Value-LIFO:  This method shows all the inventory figures at dollar price rather than units.…

Q: Midori Company had ending inventory at end-of-year prices of $100,000 at December 31, 2016; $119,900…

A: "Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Walgreens Boots Alliance, Inc. reported inventories of $8,678 million and $6,076 million in its…

A: Adjustment needs to be made in the cost of goods sold for changes in inventory valuation of both…

Q: Wildhorse Company adopted the dollar-value LIFO method on January 1, 2020 (using internal price…

A: LIFO is last in first out method of inventory valuation in which inventories which are purchased at…

Q: Carswell Electronics adopted the dollar-value LIFO method on January 1, 2021, when the inventory…

A: Ending inventory at base year cost  = Ending inventory at year end cost / cost index Inventory…

Q: Hubble Space Incorporated has the following data which includes inventory conversion period or ICP…

A: Inventory refers to the goods or items which are stored by the business either for selling or for…

Q: Marigold Company has used the dollar-value LIFO method for inventory cost determination for many…

A: Determine the amount of change in base price.

Q: Marigold Company adopted the dollar-value LIFO method on January 1, 2017 (using internal price…

A: LIFO is the inventory valuation method in which inventories purchased at last will be sold first.…

Q: Pharoah Company has used the dollar-value LIFO method since January 1, 2017. Pharoah uses internal…

A: Price index 2018 = Inventory at current year cost/inventory at base year cost = $1482, 000/1300000 =…

Q: Oriole Company had January 1 inventory of $291000 when it adopted dollar-value LIFO. During the…

A: Gross Profit = Sales - Cost of goods sold   Cost of goods sold = Beginning inventory + Purchases -…

Q: following data concerning inventory. At December 31, 2015, the balance in Zebra's Inventory account…

A: The allowance for inventory loss is created to overcome any reduction in value of inventory.

Q: According to a FIFO calculation, Montana Co. estimated its year-end inventory to be worth $649,000.…

A: As per inventory valuation method, the finished goods inventory on balance sheet are carried at…

Q: On January 1, 2011, the National Furniture Company adopted the dollar-value LIFO method of computing…

A: Inventory on Jan-1 is $ 200,000. If we assume prices at the beginning of the year to be 100%, we can…

Q: The following information relates to the Jimmy Johnson Company.    Date       Ending…

A: The dollar-value LIFO method is used by the companies which accounts the inventory by using LIFO…

Q: Koopman Company began operations on January 1, 2015, and uses the FIFO inventory method for…

A: FIFO (First In First Out)method is an important accounting method.It states that assets purchased…

Q: NewCorp reported $367,000 of inventory on January 1 when the company decided to adopt Dollar-Value…

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: Webster Products, Inc., adopted the dollar-value LIFO method of determining inventory costs for…

A: Inventory costing method:The costing method that is used to record the cost of goods sold, and…

Q: Mercury Company has only one inventory pool. On December 31, 2016, Mercury adopted the dollar-value…

A: Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units.…

Q: The following information relates to the Jimmy Johnson Company. Date   Ending Inventory…

A: Statement for computation of Change in Inventory (Amt $) Date Inventory at the end of year…

Q: Harlequin Co. has used the LIFO retail method since it began operations in early 2015 (its base…

A: Dollar value LIFO method is a process to calculate the cost of the inventory according to last in…

Q: On December 31, 2016, the inventory of Powhattan Company amounts to $800,000. During 2017, the…

A: Compute the inventory value at December 31, 2017, under the dollar-value LIFO method:

Q: Compute the amount of the inventory at December 31, 2020, under the dollar-value LIFO method.

A: Dollar-value LIFO method: In this method, the valuation of inventory is calculated on the monetary…

Q: Parker Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items.…

A: Formula: Net Realizable value per unit = Estimated selling price - Estimated selling expense…

Q: On January 1, 2021, the National Furniture Company adopted the dollar-value LIFO method of computing…

A: The dollar value LIFO method of inventory valuation refers to a method which follow last in first…

Q: Carswell Electronics adopted the dollar-value LIFO method on January 1, 2018, when the inventory…

A: Given information is: Inventory value as on January 1, 2018 = $720,000 CPI as on January 1,2018 =…

Q: Vaughn Manufacturing began using dollar-value LIFO for costing its inventory two years ago. The…

A: Solution: Computation of inventory at base year prices and change from prior year - David Davis…

Q: As a result of taking a physical inventory count on December 31, 2016, the Mona Lisa Company…

A: Closing stock: It is the value of unsold goods at the end of an accounting period is termed as…

Q: The Product inventory balance of 62,754 on December 31, 2010 is based on the following information:…

A: 2011 Dec 31 Ending Product Inventory valued at FIFO = $85,000 Dec 31 Index Value for $ Value LIFO =…

Q: utler Company reported ending inventory at December 31, 2010 of $1,200,000 under LIFO. It also…

A: Cost of goods sold for 2010 as per FIFO = Cost of goods sold for 2010 as per LIFO - (LIFO reserve at…

Q: In 2016, Hopyard Lumber changed its inventory method from LIFO to FIFO. Inventory at the end of 2015…

A: Describe the steps that Company H should take to report this changeThe steps that Company H should…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.