Question

Presented below is information related to Concord Company. Date Ending Inventory (End-of-Year Prices) Price Index December 31, 2017 $ 83,200 100 December 31, 2018 145,934 131 December 31, 2019 142,950 150 December 31, 2020 161,696 163 December 31, 2021 193,200 175 December 31, 2022 227,698 181 Compute the ending inventory for Concord Company for 2017 through 2022 using the dollar-value LIFO method.

Answer 1

Answer:

See the explanation for the answer

Explanation:

Year   Inventory at    Price   Inventory at    Change   Dollar value

          end of year    Index    base year      from prior     LIFO

          price                             prices              year          inventory

             $                                  $                      $                  $

2017    83,200          100        83,200              -                 83,200

2018    145,934         131         111,400            28,200        120,142

2019    142,950        150        95,300            (16,100)       99,051

2020    161,696        163        99,200             3,900         105,408

2021     193,200       175        110,400             11,200        125,008

2022    227,698      181         125,800            15,400       152,882

Dollar value LIFO inventory :

December 31, 2017: $ 83,200 x 100 / 100 = $ 83,200

December 31, 2018 : $ 83,200 + $ ( 28,200 x 131/100) = $ 120,142

December 31, 2019 : $ 83,200 + $ ( 28,200 - 16,100 x 131/100) = $ 99,051

December 31, 2020 : $ 99,051 + $ 3,900 x 163/100 = $ 105,408

December 31, 2021 : $ 105,408 + $ 11,200 x 175/100 = $ 125,008

December 31, 2022 : $ 125,008 + $ 15,400 x 181/100 = $ 152,882