Emily makes one product. Diana adopted the dollar-value LIFO inventory method on 12-31-12. Her ending inventory at 12-31-12 was $27,000. Additional inventory data follows: Cost of goods Price index Inventory at manufactured year-end prices during the (base year 2012) Year year $150,000 $165,000 $165,000 $170,000 $175,000 $185,000 2013 $28,420 $29,580 $29,640 $29,820 $31,650 $32,012 1.015 1.020 1.040 2014 2015 2016 1.050 1.055 2017 2018 1.060 Compute the inventory at December 31, 2013, 2014, 2015, 2016, 2017 and 2018 AND the cost of goods sold for each year assuming Diane uses the dollar-value LIFO method for each year.

Question
Emily makes one product. Diana adopted the dollar-value LIFO inventory method on 12-31-12. Her ending
inventory at 12-31-12 was $27,000. Additional inventory data follows:
Cost of goods
Price index
Inventory at
manufactured
year-end prices
during the
(base year 2012)
Year
year
$150,000
$165,000
$165,000
$170,000
$175,000
$185,000
2013
$28,420
$29,580
$29,640
$29,820
$31,650
$32,012
1.015
1.020
1.040
2014
2015
2016
1.050
1.055
2017
2018
1.060
Compute the inventory at December 31, 2013, 2014, 2015, 2016, 2017 and 2018 AND the cost of goods sold for each year
assuming Diane uses the dollar-value LIFO method for each year.
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Transcribed Image Text

Emily makes one product. Diana adopted the dollar-value LIFO inventory method on 12-31-12. Her ending inventory at 12-31-12 was $27,000. Additional inventory data follows: Cost of goods Price index Inventory at manufactured year-end prices during the (base year 2012) Year year $150,000 $165,000 $165,000 $170,000 $175,000 $185,000 2013 $28,420 $29,580 $29,640 $29,820 $31,650 $32,012 1.015 1.020 1.040 2014 2015 2016 1.050 1.055 2017 2018 1.060 Compute the inventory at December 31, 2013, 2014, 2015, 2016, 2017 and 2018 AND the cost of goods sold for each year assuming Diane uses the dollar-value LIFO method for each year.

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