omework: Ch10 core: 0 of 15 pts E10-8 (similar to) 2 of 9 (1 com ABC Teleconcept
ID: 2576552 • Letter: O
Question
omework: Ch10 core: 0 of 15 pts E10-8 (similar to) 2 of 9 (1 com ABC Teleconcepts, Inc. manufactures and distributes three models of hand-held Th devices: the Flame, the Globe, and the HD3. ABC uses the dollar-value LIFO method Information for 2014, 2015, and 2016 is presented in the following table. Rea Click the icon to view the data.) Requirement a. Compute the company's ending inventory using dollr-value LIFO for each price index amounts to four decimal places as given in the information, X.XXXx. Round all in layer liq below to the nearest whole dollar. Use a parentheses or minus sign when entering a 2015 Year 2014 layer Enter any number in the edit fields and then click Check Answer 2014 remaining Clear All DOLL F3 F4 FS F7 F9 3 4 5 6 8Explanation / Answer
Add/(Less): no of units purchased/(sold) in 2016 * dollar value of 2016
a)Computation of dollar value LIFO Dollar value inventory for year 2014** Particulars Units FIFo price FIFO Price per unit Dollar value index in 2014 Dollar value LIFO in 2014 Frame 10,000 470,000 47.00 1.00 470,000.00 Globe 3,000 670,000 223.33 1.00 670,000.00 HD3 6,000 470,000 78.33 1.00 470,000.00 **in the absence of information it is presumed that the FIFO price per unit is the dollar value LIFO equivalent for the year 2014 Dollar value inventory for year 2015 Particulars Units FIFo price FIFO Price per unit Dollar value index in 2015 Dollar value LIFO in 2015 refer note 1 adjustment entry to be passed Frame 8,000 680,000 85.00 1.04 370,240.00 309,760.00 Globe 3,000 582,000 194.00 1.04 670,000.00 -88,000.00 HD3 2,000 825,000 412.50 1.04 140,147.20 684,852.80 Total adjustment value 906,612.80 Dollar value LIFO - note 1 Particulars Frames Globe HD3 Per unit dollar value of frames (2014 price *index for 2015) 48.88 232.26 81.46 2014 dolllar value LIFO 470,000.00 670,000.00 470,000.00 Add/(Less): no of units purchased/(sold) in 2015 -2,000.00 0.00 -4,000.00 Add/(Less): no of units purchased/(sold) in 2015 * dollar value of 2015 -97,760.00 0.00 -325,852.80 Dollar value LIFO as at 2015 370,240.00 670,000.00 140,147.20 Dollar value inventory for year 2016 Particulars Units FIFo price FIFO Price per unit Dollar value index in 2016 Dollar value LIFO in 2015 refer note 2 adjustment entry to be passed Frame 2,000 415,000 207.50 1.0969 158,022.80 256,977.20 Globe 6,000 410,000 68.33 1.0969 1,407,912.03 -997,912.03 HD3 7,000 180,000 25.71 1.0969 574,748.09 -394,748.09 Total adjustment value -1,135,682.92 Dollar value LIFO - note 2 Particulars Frames Globe HD3 Per unit dollar value of frames (2014 price *index for 2016) 51.55 244.97 85.92 2015 dolllar value LIFO 370,240.00 670,000.00 140,147.20 Add/(Less): no of units purchased/(sold) in 2016 -6,000 3,000 5,000Add/(Less): no of units purchased/(sold) in 2016 * dollar value of 2016
-206,217.20 734,912.03 429,600.89 Dollar value LIFO as at 2016 158,022.80 1,407,912.03 574,748.09 b) Journal entries to be passed i) Entry to be passed in 2015 : Cost of goods manufactured Dr 906,612.80 To Inventory Cr 906,612.80 (Being net decrease in inventory value under the dollar value LIFO method) ii) Entry to be passed in 2016 : Inventory Dr 1,135,682.92 To cost of goods manufactured 1,135,682.92 (Being net increase in inventory value under the dollar value LIFO method)Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.