Intermediate Accounting, Student Value Edition (2nd Edition)
2nd Edition
ISBN: 9780134732145
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Question
Chapter 10, Problem 10.7E
a.
To determine
The ending inventory of the company using the dollar-value LIFO for each year.
b.
To determine
To prepare: The journal entries to adjust the LIFO reserve for each year.
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Hsieh Company adopted the dollar-value LIFO method on January 1, 2020 (using internal price indexes and multiplepools). The following data are available for inventory pool A for the 2 years following adoption of LIFO:At Base- At CurrentInventory Year Cost Year Cost1/1/2020 $334,000 $334,00012/31/2020 361,000 375,44012/31/2021 412,000 449,080
Waterway, Inc. uses the dollar-value LIFO method of computing its inventory. Data for the past 3 years follow.
Year EndedDecember 31
Inventory atCurrent-Year Cost
PriceIndex
2019
$20,600
100
2020
22,470
105
2021
27,492
116
Compute the value of the 2020 and 2021 inventories using the dollar-value LIFO method.
2020
2021
Inventory under LIFO
Dollar-Value LIFO
Belstock Company manufactures one product. On December 31, 2018, Belstock adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was $200,000. Inventory data for succeeding years are as follows:
Year
Inventory at RespectiveYear-End Prices
Price Index(Base Year 2018)
2019
$220,500
1.05
2020
287,500
1.15
2021
276,000
1.20
Required:
Compute the ending inventory using the dollar-value LIFO method for 2019, 2020, and 2021. Do not round your intermediate calculations. If required, round your answers to the nearest dollar.
December 31, 2019
December 31, 2020
December 31, 2021
Chapter 10 Solutions
Intermediate Accounting, Student Value Edition (2nd Edition)
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