Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value LIFO inventory method. The inventory on that date using the
Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $220,000. Inventory data are as follows: Year 2022 2023 2024 Ending Inventory at Year-End Costs $273.000 368,000 372, 000 Ending Inventory at Base Year Costs $ 260,000 320,000 310,000 Required: Compute the inventory at December 31, 2022, 2023, and 2024, using the dollar-value LIFO method. (Round "Year end cost index" to 2 decimal places.) X Answer is not complete. Inventory Layers Converted to Base Year Cost Inventory Layers Converted to Cost Inventory DVL Cost Inventory at Year- End Cost Date Year- End Cost Index End Inventory Layers at Base Year Cost Inventory Layers Converted to Cost 12/31/2021 12/31/2022 0 $ $ 220,000 273,000 1 = Year- End Cost Index 1.00 1.00 1.05 = = 1.05 = = = 12/31/2023 $ 368,000 1.15l= Inventory Layers at Base Year Cost $ 220,000 Base $ 260,000 Base 2022 $ 320,000Base 2022 2023 $ 310,000 Base 2022 2023 1 $ $ $ $ $ $ $ $ 220,000 220,000 40,000 220,000 40,000 60,000 220,000 40,000 12/31/2024 $ 372,000 1.2 = = 1.15 1 1.05 1.15 2024 x 0
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