INTERMEDIATE ACTG+CONNECT <LOOSE>
9th Edition
ISBN: 9781260517125
Author: SPICELAND
Publisher: MCGRAW-HILL CUSTOM PUBLISHING
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Textbook Question
Chapter 8, Problem 8.24E
Dollar-value LIFO
• LO8–8
Mercury Company has only one inventory pool. On December 31, 2018, Mercury adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $200,000. Inventory data are as follows:
| Year | Ending Inventory at Year-End Costs | Ending Inventory at Base Year Costs |
| 2019 | $231,000 | $220,000 |
| 2020 | 299,000 | 260,000 |
| 2021 | 300,000 | 250,000 |
Required:
Compute the inventory at December 31, 2019, 2020, and 2021, using the dollar-value LIFO method.
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Exercise 8-27 (Algo) Dollar-value LIFO [LO8-8)
Mercury Company has only one inventory pool. On December 31, 2024, Mercury adopted the dollar-value LIFO inventory method. The
inventory on that date using the dollar-value LIFO method was $218,000 Inventory data are as follows:
Year
2025
2026
2027
Ending Inventory at Year
End Costs
$ 268,000
341,100
364,000
Date
Required:
Compute the inventory at December 31, 2025, 2026, and 2027, using the dollar-value LIFO method.
Note: Round "Year end cost index" to 2 decimal places.
12/31/2024
12/31/2025 $
12/031/2026
Inventory
at Year End
Cost
Inventory Layers Converted to Base Year Cost
Year
Ending
Inventory
End
Cost
at flase
Year Cost
Index
1 GE $218.000
1.05.
Base
S 256.000 Base
2025
1.15 - $ 314,000 Base
$218.000 O
268 800
Ending Inventory at Base
Year Costs
$ 256,000
114,000
304,000
$ 361,100
12/31/2027 $364.800
12 O-
3 304.000
Answer is not complete.
Inventory Layers Converted to Cost
Ending
Inventory
at flase
Year Cost
$218.000 O
$218.000
s…
P 8-14 Dollar-value LIFO
LO8-8
Kingston Company uses the dollar-value LIFO method of computing inventory. An external price index is used
to convert ending inventory to base year. The company began operations on January 1, 2018, with an inventory
of $150,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows:
Year Ended
December 31
2018
2019
2020
2021
Ending Inventory
at Year-End Costs
$200,000
245,700
235,980
228,800
Cost Index
(Relative to Base Year)
1.08
1.17
1.14
1.10
Required:
Calculate inventory amounts at the end of each year.
Exercise 8-27 (Algo) Dollar-value LIFO [LO8-8]
Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value LIFO inventory method. The
inventory on that date using the dollar-value LIFO method was $201,000. Inventory data are as fpllows:
Ending Inventory at
Year-End Costs
Ending Inventory at
Year
Base Year Costs
2022
$233,100
302,450
$222,000
263,000
253,000
2023
2024
303,600
Required:
Compute the inventory at December 31, 2022, 2023, and 2024, using the dollar-value LIFO method. (Round "Year end cost index" to
2 decimal places.)
O Answer is not complete.
Inventory
DVL Cost
Inventory Layers Converted to Base Year Cost
Inventory Layers Converted to Cost
Year-
Inventory
Layers at
Base Year
Cost
Inventory
Layers at
Base Year
Cost
Year-
Inventory
at Year-End
Cost
End
Cost
Index
End
Cost
Index
Inventory
Layers
Converted
to Cost
Date
12/31/2021
201,000
1
IS
201.000
Base
2$
201,000
1
%3D
24
201,000
$
201,000
%3D
12/31/2022
233,100
1.05
2$
222,000 Base
IS…
Chapter 8 Solutions
INTERMEDIATE ACTG+CONNECT <LOOSE>
Ch. 8 - Describe the three types of inventory of a...Ch. 8 - What is the main difference between a perpetual...Ch. 8 - The Cloud Company employs a perpetual inventory...Ch. 8 - The Bockner Company shipped merchandise to Laetner...Ch. 8 - What is a consignment arrangement? Explain the...Ch. 8 - Prob. 8.6QCh. 8 - The Esquire Company employs a periodic inventory...Ch. 8 - Prob. 8.8QCh. 8 - Its common in the electronics industry for unit...Ch. 8 - Explain why proponents of LIFO argue that it...
Ch. 8 - Prob. 8.11QCh. 8 - Describe the ratios used by financial analysts to...Ch. 8 - Prob. 8.13QCh. 8 - Prob. 8.14QCh. 8 - The Austin Company uses the dollar-value LIFO...Ch. 8 - Identify any differences between U.S. GAAP and...Ch. 8 - Determining ending inventory; periodic system ...Ch. 8 - Prob. 8.2BECh. 8 - Prob. 8.3BECh. 8 - Purchas e discounts; gross method LO83 On...Ch. 8 - Prob. 8.5BECh. 8 - Prob. 8.6BECh. 8 - Inventor y cost flow methods; perpetual system ...Ch. 8 - LIFO method LO84 Esquire Inc. uses the LIFO...Ch. 8 - LIFO method LO84 AAA Hardware uses the LIFO...Ch. 8 - LIFO liquidation LO86 Refer to the situation...Ch. 8 - Prob. 8.11BECh. 8 - Ratio analysis LO87 Selected financial statement...Ch. 8 - Dollar-value LIFO LO88 At the beginning of 2018,...Ch. 8 - Perpetual inventory system; journal entries LO81...Ch. 8 - Prob. 8.2ECh. 8 - Determining cost of goods sold; periodic inventory...Ch. 8 - Perpetual and periodic inventory systems compared ...Ch. 8 - Prob. 8.6ECh. 8 - Goods in transit; consignment LO82 The December...Ch. 8 - Physical quantities and costs included in...Ch. 8 - Prob. 8.9ECh. 8 - Prob. 8.10ECh. 8 - Prob. 8.11ECh. 8 - FASB codification research LO82, LO83 Access the...Ch. 8 - Inventory cost flow methods; periodic system ...Ch. 8 - Inventory cost flow methods; perpetual system ...Ch. 8 - Comparison of FIFO and LIFO; periodic system ...Ch. 8 - Average cost method; periodic and perpetual...Ch. 8 - FIFO, LIFO, and average cost methods LO81, LO84...Ch. 8 - Supplemental LIFO disclosures; LIFO reserve; AEP...Ch. 8 - LIFO liquidation LO81, LO84, LO86 The Reuschel...Ch. 8 - Dollar-value LIFO LO88 On January 1, 2018, the...Ch. 8 - Dollar-value LIFO LO88 Mercury Company has only...Ch. 8 - Dollar-value LIFO LO88 Carswell Electronics...Ch. 8 - Concepts; terminology LO81 through LO85 Listed...Ch. 8 - Various inventory transactions; journal entries ...Ch. 8 - Prob. 8.2PCh. 8 - Prob. 8.4PCh. 8 - Various inventory costing methods LO81, LO84...Ch. 8 - Various inventory costing methods LO81, LO84...Ch. 8 - Supple mental LIFO disclosures; Caterpillar LO84,...Ch. 8 - LIFO liquidation LO84, LO86 Taylor Corporation...Ch. 8 - LIFO liquidation LO84, LO86 Cansela Corporation...Ch. 8 - Prob. 8.11PCh. 8 - Integrating problem; inventories and accounts...Ch. 8 - Dollar-value LIFO LO88 On January 1, 2018, the...Ch. 8 - Dollar-value LIFO LO88 Kingston Company uses the...Ch. 8 - Dollar-value LIFO LO88 On January 1, 2018,...Ch. 8 - Prob. 8.1BYPCh. 8 - Real World Case 82 Physical quantities and costs...Ch. 8 - Judgment Case 83 The specific identification...Ch. 8 - Prob. 8.4BYPCh. 8 - Prob. 8.5BYPCh. 8 - Judgment Case 86 Goods in transit LO82 At the end...Ch. 8 - Ethics Case 87 Profit manipulation LO84 In 2017...Ch. 8 - Real World Case 88 Effects of inventory valuation...Ch. 8 - Real World Case 89 Effects of inventory valuation...Ch. 8 - Communication Case 810 Dollar-value LIFO method ...Ch. 8 - Prob. 8.11BYPCh. 8 - Prob. 8.CCTCCh. 8 - Prob. CCIFRS
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