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Your answer is partially correct. Try again Presented below is information related to Ayayai Company. Ending Inventory (End-of-Year Price Date Prices) December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017 December 31, 2018 December 31, 2019 $77,100 140,238 138,528 155,844 185,808 223,590 Index 100 126 144 156 168 174 Compute the ending inventory for Ayayai Company for 2014 through 2019 using the dollar-value LIFO method Ending Inventory 2014 77,100 2015 202595.85 2016 235399.68 2017 303472.34 2018 419460.88 2019 588935.42

Solution

Year

Ending inventory

2014

$77100

2015

$120192

2016

$101166

2017

$105828

2018

$119310

2019

$150120

Explanation;

Year

Inventory at the end year prices

Price index

Inventory at base year prices

Change from prior year

2014

$77100

100

$77100

$0

2015

$140238

126

$111300

$34200

2016

$138528

144

$96200

($15100)

2017

$155844

156

$99900

$3700

2018

$185808

168

$110600

$10700

2019

$223590

174

$128500

$17900

Now let’s calculate dollar value inventory;

Year

Calculations

Ending Inventory

2014

$77100 * 1.00

$77100

2015

($77100 * 1.00) + ($34200 * 1.26)

$120192

2016

($77100 * 1.00) + ($19100 * 1.26)

$101166

2017

($77100 * 1.00) + ($22800 * 1.26)

$105828

2018

($77100 * 1.00) + ($33500 * 1.26)

$119310

2019

($77100 * 1.00) + ($34200 * 1.26) + ($17200 * 1.74)

$150120

Year	Ending inventory
2014	$77100
2015	$120192
2016	$101166
2017	$105828
2018	$119310
2019	$150120