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

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Step-by-step 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