1) Keillor Company’s inventory of $1,125,700 at December 31, 2014, was based on

Question

1) Keillor Company’s inventory of $1,125,700 at December 31, 2014, was based on a physical count of goods priced at cost and before any year-end adjustments relating to the following items.

What amount should Keillor report as inventory on its balance sheet?
Inventory to be reported??

2) Ashbrook Company adopted the dollar-value LIFO method on January 1, 2014 (using internal price indexes and multiple pools). The following data are available for inventory pool A for the 2 years following adoption of LIFO.

Inventory

At Base-Year
Cost

At Current-Year
Cost

Computing an internal price index and using the dollar-value LIFO method, at what amount should the inventory be reported at December 31, 2015? (Round price index and dollar-value LIFO inventory to 0 decimal places, e.g. 162.)

(a) Goods shipped from a vendor f.o.b. shipping point on December 24, 2014, at an invoice cost of $69,770 to Keillor Company were received on January 4, 2015. (b) The physical count included $37,330 of goods billed to Sakic Corp. f.o.b. shipping point on December 31, 2014. The carrier picked up these goods on January 3, 2015.

Explanation / Answer

Calculation of Inventory that should be reported by Keilor Inventory Reported 1125700 Add: Inventory on FOB basis 69770 Less: Inventory billed to Sakic -37330 Inventory to be reported 1158140

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