Question
Mary's Co is a local specialized drinkware seller. The owner keeps inventory record in a special method that is suitable to the business. At the
Mary's Co is a local specialized drinkware seller. The owner keeps inventory record in a special method that is suitable to the business. At the end of the year, the owner of FakeArt counts inventory and the accountant makes an adjustment to make FakeArt compliant with the Dollar-Value-LIFO Inventory Valuation method. The owner and the accountant got into a disagreement this year and the owner comes to you, a new accountant in town and asks you to help him with the DVL adjustment. Based on the information below, answer questions 11-13:
Ending Inventory Price Index 12/31/2018 88,000 100
12/31/2019 95,000 110
12/31/2020 108,000 115
12/31/2021 116,000 125
12/31/2022 130,000 140
What is the allowance to reduce the inventory to LIFO for year 2018?
8,636 8,800 4,318
What is the additional layer in year 2019 and 2020?
2019 2020
NONE 7,549
7 ,549 8,682
7,402 7,549
7,402 8,682
What is the allowance to reduce the inventory to LIFO for year 2020?
8,636 8,800
4,318 9,280
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started