Exercise 9-27 Connie Chung Corporation adopted the dollar -value LIFO retail inv

Question

Exercise 9-27 Connie Chung Corporation adopted the dollar -value LIFO retail inventory mthod on January 1, 2013. At that time the inventory had a cost of $56,000 and a retail price of $100,000. The following information is available. y at Retail Cost-Retail % Price In 2013 2014 2015 2016 $126,260 55% 57% 58% 54% 107 112 142,240 129,870 175,140 126 The price index at January 1, 2013, is 100. Con pute the ending inventory at December 31 of the years 2013 2016 decimal places, e.g. 28,987) Round ratios for computational purposes to O decimal places, e.g. 78% and final answers to 0 Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

2013 Restate the base year inventory to retail ($126260 /1.07) 118000 Layers 1 : $100,000*1.00*(56000/100,000) 56000 Layers 2 : $18000*1.07*55% 10593 Ending inventory for 2013 66593 2014 Restate the base year inventory to retail ($142240 /1.12) 127000 Layers 1 : $100,000*1.00*(56000/100,000) 56000 Layers 2 : $18000*1.07*55% 10593 Layers 3 : $9000*1.12*57% 5745.6 Ending inventory for 2014 72338.6 2015 Restate the base year inventory to retail ($129870 /1.17) 111000 Layers 1 : $100,000*1.00*(56000/100,000) 54000 Layers 2 : $11000*1.07*55% 6473.5 Ending inventory for 2015 60473.5 2016 Restate the base year inventory to retail ($175140 /1.26) 139000 Layers 1 : $100,000*1.00*(56000/100,000) 54000 Layers 2 : $11000*1.07*55% 6473.5 Layers 3 : $28000*1.26*54% 19051.2 Ending inventory for 2016 79524.7 2013 2014 2015 2016 Ending inventory 66593 72338.6 60473.5 79524.7

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