\"Presented below is information related to Meghani Company. \" \"Date (End-of-Y

Question

"Presented below is information related to Meghani Company. " "Date (End-of-Year)" "Ending Inventory (FIFO)" Price Index 2015 $160,000 100 2016 220,500 107 2017 218,500 115 2018 242,500 125 2019 283,500 135 2020 310,800 150 Instructions: "Compute the ending inventory for Meghani Company for 2015 through 2020 using the dollar-value LIFO method. "

Year Inventory at
end-of-year prices Price Index Inventory at
base-year price Layers Index Value LIFO Value LIFO Total FIFO Reserve 2015 $160,000 1 2016 220,500 1.07 2017 218,500 1.15 2018 242,500 1.25 2019 283,500 1.35 2020 310,800 1.5 Journal entries 2016 2017 2018 2019 2020

Explanation / Answer

  

Year Inventory at the end-of-year prices Price Index Inventory at base-year price Layers Index Value LIFO Value LIFO total FIFO Reserve 2015 $1,60,000 1 $1,60,000 $1,60,000 1 $1,60,000 $1,60,000 $0 2016 $2,20,500 1.07 $2,06,075 $1,60,000 1 $1,60,000 $46,075 1.07 $49,300 $2,09,300 $11,200 2017 $2,18,500 1.15 $1,90,000 $1,60,000 1 $1,60,000 $30,000 1.07 $32,100 $1,92,100 $26,400 2018 $2,42,500 1.25 $1,94,000 $1,60,000 1 $1,60,000 $30,000 1.07 $32,100 $4,000 1.25 $5,000 $1,97,100 $45,400 2019 $2,83,500 1.35 $2,10,000 $1,60,000 1 $1,60,000 $30,000 1.07 $32,100 $4,000 1.25 $5,000 $16,000 1.35 $21,600 $2,18,700 $64,800 2020 $3,10,800 1.5 $2,07,200 $1,60,000 1 $1,60,000 $30,000 1.07 $32,100 $4,000 1.25 $5,000 $13,200 1.35 $17,820 $2,14,920 $95,880

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