Question
On January 1, 2013,the Haskins Company adopted the dollar-value LIFO method for its one inventory pool.The pools value on this date was $600,000. The 2013
On January 1, 2013,the Haskins Company adopted the dollar-value LIFO method for its one inventory pool.The pools value on this date was $600,000. The 2013 and 2014 ending inventory valued at year-end costs were $690,000 and 714,960, respectively. The appropriate cost indexes are 1.04 for 2013 and 1.08 for 2014.
a.Calculate the ending inventory balance that Haskins will report on its December 31, 2013 balance sheet.
b.Calculate the ending inventory balance that Haskins will report on its December 31, 2014balance sheet
c.Explain, in one to three sentences, why the dollar-value LIFO often results in less frequent LIFO liquidations.[8points]
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
Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
