Brief Exercise 88 Splish Company had ending inventory at end

Brief Exercise 8-8

Splish Company had ending inventory at end-of-year prices of $139,000 at December 31, 2016; $167,692 at December 31, 2017; and $182,782 at December 31, 2018. The year-end price indexes were 100 at 12/31/16, 113 at 12/31/17, and 118 at 12/31/18.

Compute the ending inventory for Splish Company for 2016 through 2018 using the dollar-value LIFO method.

		2016		2017		2018
Ending Inventory		$ $\"\"$		$ $\"\"$		$ $\"\"$

Calculate ending inventory using dollar value LIFO method :

Year	Base year price		Ending inventory value under dollar value LIFO method
2016	139000/1=139000	139000*1=139000	139000
2017	167692/1.13=148400	1390001+94001.13	149622
2018	182782/1.18=154900	1390001+94001.13+6500*1.18	157292

Brief Exercise 8-8 Splish Company had ending inventory at end-of-year prices of $139,000 at December 31, 2016; $167,692 at December 31, 2017; and $182,782 at De

Brief Exercise 88 Splish Company had ending inventory at end

Solution

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