d WileypLUS edugen wileyplus.com/edugen/lti/main.uni Return to Blackboard Interm
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Question
d WileypLUS edugen wileyplus.com/edugen/lti/main.uni Return to Blackboard Intermediate Accounting, 16e I system Announcements Exercise 8-23 Your answer is partially correct. Try again. The following information relates to the Shamrock Company. Ending Inventory Price (End-of-Year Prices) Index Date December 31, 2013 December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017 $ 74,800 100 97,888112 105,772 124 119,424 128 112,694 134 Use the dollar-value LIFO method to compute the ending inventory for Shamrock Company for 2013 through 2017 Ending Inventory 2013 2014 88912 2015 2016 2017 108704 LINK TO TEXTExplanation / Answer
FOR year ended 2017,
74800 * 1.00 = 74800
+ 9300 *1.12 = 10416
85216
Net Change in 2017 = 12600 - 2100 + 8000 - 9200 =9300 (refer above table in change column)
In year 2017, the price index of 2014 has been used because no layer has been formed between 2014 and 2017. The ending inventory at base year prices in year 2017 ($ 84100) is less than ending inventory at base year price in year 2014 ($ 87400).
year ended Inventory at year end price Price index (%) inventory at base year price change 2013 74800 1.00 74800 0 2014 97888 1.12 87400 12600 2015 105772 1.24 85300 (2100) 2016 119424 1.28 93300 8000 2017 112694 1.34 84100 (9200)Related Questions
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