Exercise 8-25 Presented below is information related to Dino Radja Company. Date

Question

Exercise 8-25 Presented below is information related to Dino Radja Company.

Date                          Ending Inventory (End-of-Year Prices) Price Index

December 31, 2011 $ 58,900                                                   100

December 31, 2012    130,644                                                  114

December 31, 2013    130,476                                                  131

December 31, 2014     147,486                                                 141

December 31, 2015     176,016                                                 152

December 31, 2016      208,086                                                158

Compute the ending inventory for Dino Radja Company for 2011 through 2016 using the dollar-value LIFO method. Ending Inventory

2011 $

2012 $

2013 $

2014 $

2015 $

2016 $

Explanation / Answer

Step1: Computation of the Inventory at base-year-prices and change from prior period.We have,

Step2: Computation of ending inventory using the dollar-value LIFO method.We have,

Date Ending Inventory Pirce index Base-;year-prices Change from prior year December 31, 2011 $ 58,900    100 $ 58,900 0 December 31, 2012 130,644 114 114,600 55,700 December 31, 2013 130,476    131 99,600 ( 15,000) December 31, 2014 147,486    141 104,600 5,000 December 31, 2015 176,016    152 115,800 11,200 December 31, 2016 208,086    158 131,700 15,900

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