Have asked this same question on here 3x. I will not mark the answer unless it i

Question

Have asked this same question on here 3x. I will not mark the answer unless it is correct. Please put the correct answer w/ corrections.

Mercury Company has only one inventory pool. On December 31, 2018, Mercury adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $214,000. Inventory data are as follows Ending Inventory at Year-End Costs Year 2019 2020 2021 Ending Inventory at Base Year Costs $ 248 , 088 392 , 00 292,000 $260,40 347, 300 35e,400 Required: Compute the inventory at December 31, 2019, 2020, and 2021, using the dollar-value LIFO method. (Round "Year end cost index" to 2 decimal places.) Answer is not complete. Ending Inventory DVL Cost Inventory Layers Converted to Base Year Cost Inventory Layers Converted to Cost Inventory at Year- End Cost Year- End Cost Index Inventory Layers at Base Year Cost Inventory Layers at Base Year Cost Year- End Cost Index Inventory Layers Converted to Cost Date 12/31/20 18 |$ 214,000 ÷ 1.00|= |$ 214,000! Base 214,000Base 2019 12/31/2020 347,3005 35,700Base 2019 2020 Base 2019 2020 - $ 214,000$214,000 1.00 1.00 1.05 1.00 12/31/2019 260.4001.05 0 214,000 35,700 x > | 1.05 > |= |$ 1.15 $ 249,700 350,400 x | 0|- |$ 214,000 12/31/2021 1.20 1.00 1.0535,700 1.15 - $ 52,800 $302,500

Explanation / Answer

Calculate following :

Inventory layers converted to base year cost Inventory layers converted to cost Ending inventory DVL Cost Date Inventory at year end cost Year end cost index Inventory layers at base year cost Inventory layers at base year cost Year end cost index Inventory layers converted to cost 12/31/2018 214000 / 1.00 = 214000 Base 214000 * 1.00 = 214000 $214000 12/31/2019 260400 / 1.05 = 248000 Base 214000 * 1.00 = 214000 2019 34000 * 1.05 = 35700 249700 12/31/2020 347300 / 1.15 = 302000 Base 214000 * 1.00 = 214000 2019 34000 * 1.05 = 35700 2020 54000 * 1.15 = 62100 311800 12/31/2021 350400 / 1.20 = 292000 Base 214000 * 1.00 = 214000 2019 34000 * 1.05 = 35700 2020 44000 * 1.15 = 50600 300300

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