Presented below is information related to Dino Radja Company. Date Ending Invent

Question

Presented below is information related to Dino Radja Company.

Date

Ending Inventory
(End-of-Year Prices)

Price
Index

Compute the ending inventory for Dino Radja Company for 2011 through 2016 using the dollar-value LIFO method.

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Date

Ending Inventory
(End-of-Year Prices)

Price
Index

December 31, 2011 $ 74,500 100 December 31, 2012 149,410 134 December 31, 2013 149,175 153 December 31, 2014 170,482 166 December 31, 2015 204,239 179 December 31, 2016 244,015 185 Presented below is information related to Dino Radja Company Ending Inventory Price Index 100 134 153 166 179 185 (End-of-Year Date Prices December 31, 2011 December 31, 2012 December 31, 2013 December 31, 2014 December 31, 2015 December 31, 2016 $ 74,500 149,410 149,175 170,482 204,239 244,015 Compute the ending inventory for Dino Radja Company for 2011 through 2016 using the dollar-value LIFO method

Explanation / Answer

W1 = 37000*134/100=49580

W2=23000*134/100=30820

W3= 28200*134/100=37788

W4= 2600*179/100=4654

W5=17800*165/100=32930

Year inventory at
Base year inventory
Layer year of
Layer inventory at
Added years inventory (dollar
Year) LIFO 2011 74500 74500 base 74500 $74500 2012 111500
( 149410*100/134) 74500
37000 base
2012 74500
49580(w1) $124080 2013 97500
(149175*100/153) 74500
23000 base
2012 74500
30820(w2) $105320 2014 102700
(170482*100/166) 74500
28200 base
2012 74500
37788(w3) $112288 2015 114100
(204239*100/179) 74500
37000
2600 base
2012
2015 74500
49580
4654(w4) $128734 2016 131900
(244015*100/185) 74500
37000
2600
17800 base
2012
2015
2016 74500
49580
4654
32930(w5) $161664

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