Question

Oasis company has used the dollar-value LIFO method for inventory cost determination for many years. The following data were extracted from Oasis's records.
Date Price Index Ending Inventory @ base prices ending inventory @ dollar-value LIFO

12/31/14 105 $92,000 $92,600

12/31/15 ? $97,000 $98,350

Calculate the index used for 2015 that yielded the above results.

Answer 1

Calculate the index used for 2015 that yielded the above results
Answer:
97000 – 92000 = 5000
98350 – 92600 = 5750
Index = 5750 / 5000 * 100 = 115

Thank you for posting your question here at brainly. I hope the answer will help you. Feel free to ask more questions here.

Answer 2

Answer:

The index is 115.

Explanation:

The first thing we have to do is calculate the increase in base prices, which is given by :

97000-92000=5000

now we have to calculate the increase in the Dollar-Value LIFO, which is given by:

98350-92600=5750

finally, we can establish the relationship between the two increases as:

Index*5000=5750

From where, making it explicit for the index, we then finally have that it is given by:

Index= 5750/5000=1.15

which we can express as:

Index=1.15*100=115