Answer:
Dino Radja Company
The ending inventory for Dino Radja Company for 2017 through 2022 using the dollar-value LIFO method:
Date Ending Inventory Price Dollar Value
(End-of-Year Prices) Index LIFO
December 31, 2017 $ 80,000 100 $80,000 ($80,000*1.00)
December 31, 2018 115,500 105 110,000 ($115,500/1.05)
December 31, 2019 108,000 120 90,000 ($108,000/1.20)
December 31, 2020 122,200 130 94,000 ($122,200/1.30)
December 31, 2021 154,000 140 110,000 ($154,000/1.40)
December 31, 2022 176,900 145 122,000 ($176,900/1.45)
Explanation:
a) Data and Calculations:
Date Ending Inventory Price Index
(End-of-Year Prices)
December 31, 2017 $ 80,000 100
December 31, 2018 115,500 105
December 31, 2019 108,000 120
December 31, 2020 122,200 130
December 31, 2021 154,000 140
December 31, 2022 176,900 145
