Exercise 8-25 Date Ending Inventory (End-of-Year Prices) Price Index Exercise 8-
ID: 2606346 • Letter: E
Question
Exercise 8-25
Date
Ending Inventory
(End-of-Year Prices)
Price
Index
Exercise 8-25
Presented below is information related to Dino Radja Company.Date
Ending Inventory
(End-of-Year Prices)
Price
Index
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
Current $
Price Index
Base Year
Date
a
b
c=a/b%
Change from prior year
2011
64,200
100
64,200
-
2012
1,56,792
139
1,12,800
48,600
2013
1,53,912
159
96,800
(16,000)
2014
1,78,020
172
1,03,500
6,700
2015
2,11,825
185
1,14,500
11,000
2016
2,49,216
192
1,29,800
15,300
Ending Inventory—Dollar-value LIFO:
Year
Ending Inventory
2011
64,200
Year
Current $
Price Index
Base Year
2012
64,200
100
64,200
48,600
139
67,554
Ending Inventory
1,31,754
Year
Current $
Price Index
Base Year
2013
64,200
100
64,200
32,600
139
45,314
Ending Inventory
1,09,514
Year
Current $
Price Index
Base Year
2014
64,200
100
64,200
32,600
139
45,314
6,700
172
11,524
Ending Inventory
1,21,038
Year
Current $
Price Index
Base Year
2015
64,200
100
64,200
32,600
139
45,314
6,700
172
11,524
11,000
185
20,350
Ending Inventory
1,41,388
Year
Current $
Price Index
Base Year
2016
64,200
100
64,200
32,600
139
45,314
6,700
172
11,524
11,000
185
20,350
15,300
192
29,376
Ending Inventory
1,70,764
Year
Ending Inventory
2011
$ 64,200
2012
$ 131,754
2013
$ 109,514
2014
$ 121,038
2015
$ 141,388
2016
$ 170,764
Current $
Price Index
Base Year
Date
a
b
c=a/b%
Change from prior year
2011
64,200
100
64,200
-
2012
1,56,792
139
1,12,800
48,600
2013
1,53,912
159
96,800
(16,000)
2014
1,78,020
172
1,03,500
6,700
2015
2,11,825
185
1,14,500
11,000
2016
2,49,216
192
1,29,800
15,300
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