ureIhttps7/newconnect mheducation.com/low/connect.htm Connect a The Common Appli

Question

ureIhttps7/newconnect mheducation.com/low/connect.htm Connect a The Common Applic classes requirement ACCT 3210 02 Kingston Company uses the dollar-value LIFO method of computing inventory An external price index is used to convert ending inventory to base year The company began operations on Januery 1, 2018, with an inventory of $129,000 Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows Year Ended December 31 2018 2019 2020 2021 Ending Inventory at Year-End Costs $197,600 261,030 243,100 238, 500 Cost Index (Relative to Base Year) 1.04 1.13 1.10 1.86 Required Calculate inventory amounts at the end of each year (Round intermediate calculations and final answers to the nearest whole dollars.) Inventory Layers Converted to Base Year Cost Inventory Layers Converted to Cost Inventory DVL Inventory at Year- End Cost Year-End Cost Index Layers at Base Year Cost Inventory Layers at Base Year Cost Year-End Cost Index Converted to Cost 01/01/2018 12/31/2018 Base 2018 Base 2018 2019 Base 2018 2019 Base 2018 2019 2021 12/31/2019 1231/2020 12/31/2021

Explanation / Answer

Inventory layers converted to Base Year Cost Inventory Layers Converted to Cost EndingInventoryDVL 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 01/01/2018 $129,000 $129,000 = $129,000 Base $129,000 1 = $129,000 $129,000 12/31/2018 $197,600 1.08 $182,963 = $129,000 Base $129,000 1 = $129,000 $53,963 2108 $53,963 1.08 = $58,280 $187,280 12/31/2019 261030 1.13 231000 = $129,000 Base $129,000 1 = $129,000 $53,963 2018 $53,963 1.08 = $58,280 $48,037 2019 $48,037 1.13 = 54281.85 $241,562 12/31/2020 243100 1.1 221000 = $129,000 Base $129,000 1 = $129,000 $53,963 2018 $53,963 1.08 = $58,280 $38,037 2019 $38,037 1.13 = $42,982 $230,262 12/31/2021 238500 1.06 225000 = $129,000 Base $129,000 1 = $129,000 $53,963 2018 $53,963 1.08 = $58,280 $42,037 2019 $42,037 1.13 = $47,502 $234,782

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