Question

Will Inc. accounts for inventory using the dollar-value LIFO method. The following information is available for the year...


Computing Ending Inventory under Dollar-Value LIFO

Will Inc. accounts for inventory using the dollar-value LIFO method. The following information is available for the years 2020 through 2022.

 

Year Ending Inventory
at FIFO
Price Index
2020 $20,000 1.00
2021 32,000 1.10
2022 40,000 1.13

 

 

What is its ending inventory under the dollar-value LIFO method for the years 2020, 2021, and 2022?

Note: Round your answers to the nearest whole dollar.

Dollar-value LIFO ending inventory, 2020 Answer
Dollar-value LIFO ending inventory, 2021 Answer
Dollar-value LIFO ending inventory, 2022 Answer

Answer

Ending inventory refers to the value of stock lying with the entity at the end of the reporting period.

The required calculations have been made as follows:

Accounting homework question answer, step 2, image 1

Recent Questions