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2 December, 16:00

The following information relates to the Matthew Young Company.

Date Ending Inventory (End-of-Year Prices) Price Index

December 31, 2016 $68,400 100

December 31, 2017 122,744 134

December 31, 2018 132,904 148

December 31, 2019 150,920 154

December 31, 2020 141,920 160

Use the dollar-value LIFO method to compute the ending inventory for Young Company for 2016 through 2020.

Ending Inventory

2016 $

2017 $

2018 $

2019 $

2020 $

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  1. 2 December, 16:52
    0
    year 2016 $ 68,400

    year 2017 $ 99,488

    year 2018 $ 97,076

    year 2019 $ 109,704

    year 2020 $ 95,602

    Explanation:

    2016: year-base the nominal is the same as the ending

    2017:

    122,744 x 100/134 = 91,600

    second layer:

    91,600 - 68,400 = 23,200

    ending inventory

    base layer 68,400

    23,200 x 134/100 = 31,088

    total 99,488

    2018:

    132,904 / 1.48 = 89,800

    89,800 - 68,400 = 21.400

    21,400 x 1.34 = 28,676

    68,400 + 28,676 = 97,076

    2019:

    150,920 / 1.54 = 98,000

    98,000 - 68,400 = 29,600

    29,600 - 21,400 = 8,200

    Layers

    68,400 x 100/100 = 68,400

    21,400 x 134/100 = 28,676

    8,200 x 154/100 = 12,628

    Ending Inv 109,704

    2020:

    141,920 / 1.60 = 88,700

    88,700 - 68,400 = 20,300

    Layers:

    68,400 x 100/100 = 68,400

    20,300 x 134/100 = 27,202

    Ending Inventory 95,602
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