Question
Metlock Corporation began operations on December 1, 2016. The only inventory transaction in 2016 was the purchase of inventory on December 10, 2016, at a
Metlock Corporation began operations on December 1, 2016. The only inventory transaction in 2016 was the purchase of inventory on December 10, 2016, at a cost of $22per unit. None of this inventory was sold in 2016. Relevant information is as follows.
Ending inventory units
December 31, 2016 130
December 31, 2017, by purchase date
December 2, 2017 130
July 20, 2017 50 180
During the year 2017, the following purchases and sales were made.
Purchases
March 15 330unitsat $26
July 20 330unitsat 27
September 4 230unitsat 31
December 2 130unitsat 33
Sales
April 10 230
August 20 330
November 18 180
December 12 230
The company uses the periodic inventory method.
1.What is the price index?
2.Determine ending inventory using dollar-value LIFO. Assuming that the December 2, 2017, purchase cost is the current cost of inventory. (Hint:The beginning inventory is the base layer priced at $22per unit.)
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Principles Of Financial Accounting
Authors: Kermit Larson, John Wild
20th Edition
77338235, 978-0077619442
