Question

The information below is provided for Sea Company:_________. Year Ending Inventory End- of-Year Prices Cost Index 2017 $ 90,000 100 2018 97,650 105 2019 103,550 109 2020 $109,760 112 Required: Compute Sea Company's 2019 ending inventory using dollar-value LIFO.

Answer 1

the Sea Company's 2019 ending inventory using dollar-value LIFO is $95,000

Step-by-step explanation:

The computation of the Sea Company's 2019 ending inventory using dollar-value LIFO is sown below:

= Ending inventory for 2019 ÷ change in prices

= $103,550 ÷ 1.09

= $95,000

hence, the Sea Company's 2019 ending inventory using dollar-value LIFO is $95,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered

The 1.09 come from

= $109 ÷100