Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can someone please look over my work and make sure I'm doing this right? My work is the writing in blue. Any feedback would be

image text in transcribed

Can someone please look over my work and make sure I'm doing this right? My work is the writing in blue. Any feedback would be greatly appreciated. Thanks.

. Steven's Co. adopted the Dollar Value LIFO method in 2019. Determine the ending inventory amount for years, 1,2 & 3 and place your answers at the bottom of the page. Steven's Co.base year inventory was $1,500,000. At the end of 2020, the ending inventory value was $1,705,000. The price level relative to the base year is now 1.10. At the end of year two, it has an ending inventory value of $1,800,000. The price level relative to the base year is now 1.20. At the end of year three, it has an ending inventory value of $1,940,000. The price level relative to the base year is now 1.25. 2019 1,500,000 2020 1,705,000 2021 1,800,000 2022 1,940,000 1.00 1.10 1.20 1.25 1,500,000 50,000 -50,000 52,000 Year 1 1,500,000 + 55000 = $1,555,000 Year 2 1,500,000 + 55,000 - 55,000 = $1,500,000 Year 3 1,500,000 + 55,000 55,000 + 2500 $1,502,500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Tools For Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Ibrahim M. Aly, Donald E. Kieso

6th Canadian Edition

1119731828, 9781119731825

More Books

Students also viewed these Accounting questions