Please show all work. 15. Daition Company adopted the dollar value LIFO inventor

Question

Please show all work.

15. Daition Company adopted the dollar value LIFO inventory method on January 1, 2016. In applying the LiFO method, Dalton uses internal price indexes and the multiple-pools approach. The following data were available for Inventory Pool No. 1 for the two years following the adoption of LIFO At Current Year At Base Cost Index 1/1/16 12/31/16 12/31/17 Cost $10,00 26,000 140.800 Year Cost 100,00u 20,ccc 128,000 1.00 1,05 1.10 Under the dollar-value LIFO method the inventcry at December 31, 2017, should be A. $128,000 B. $129,800 C. $130.80c D. $140,800 16. Moss Co. has determined its year-end inventory on a FiFO basis to be $400,000. Information pertaining to that inventory is as folows: Estimated selling price $408.000 Estimated costs to sell 20,000 What should be the bcok value of Moss's inventory? A. $408,000 B. S380,000 C. S388,000 D. $400,000

Explanation / Answer

Ans. 15 Ending inventory (Dec. 31, 2017) 129800 (B) Base year cost   1/1/2016 100000 1 100000 12/31/2016 (120000 - 100000) 1.05 21000 12/31/2017 (128000 - 100000) 1.1 8800 Ending Inventory 129800 Ans. 16 Book Value of Moss Inventory: 388000 (C) Ending inventory (FIFO basis) 400000 NRV 388000 Book Value of Moss Inventory (which ever is less) 388000 *NRV =   Estimated selling price - Estimated costs to sell 408000 - 20000 388000

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