Question 1 Your answer is incorrect. Try again. Teal Corporation adopted the dol

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Question 1 Your answer is incorrect. Try again. Teal Corporation adopted the dollar-value LIFO retail inventory method on January 1, 2016. At that time the inventory had a cost of 57,000 and a retail price of $100,000. The following information is available Year-End Inventory at Retail 2016 2017 2018 2019 $121,980 137,500 116,280 167,500 Current Year cost-Retail % 58% 61% 62% 59% Year End Price Index 107 110 114 125 The price index at January 1, 2016, is 100. Compute the ending inventory at December 31 of the years 2016-2019. (Round ratios for computational purposes to O decimal places, e.g 78% and final answers to 0 decimal places, e.g. 28,987.) 2016 2017 2018 2019 Ending inventory 82901 Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Computation of dollar value inventory Year Year end Inventory at Retail Current Year Cost-Retail % Inventory at end of the year prices Price Index (%) Inventory at base year prices Change from prior year 2015 $100,000 57% $57,000 100 $57,000 $0 2016 $121,980 58% $70,748 107 $66,120 $9,120 2017 $137,500 61% $83,875 110 $76,250 $10,130 2018 $116,280 62% $72,094 114 $63,240 -$13,010 2019 $167,500 59% $98,825 125 $79,060 $15,820 Dollar Value Inventory = 2015 $57000 * 1 = $57,000.00 2016 $57000 * 1 = $57,000.00 $9120 * 1.07 = $9,758.40 $66,758.40 2017 $57000 * 1 = $57,000.00 $9120 * 1.07 = $9,758.40 $10130 * 1.10 = $11,143.00 $77,901.40 2018 $57000 * 1 = $57,000.00 $6240 * 1.07 = $6,676.80 $63,676.80 2019 $57000 * 1 = $57,000.00 $6240 * 1.07 = $6,676.80 $15820 * 1.25 = $19,775.00 $83,451.80 2016 2017 2018 2019 Ending Inventory $66,758.40 $77,901.40 $63,676.80 $83,451.80

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