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Stone Shoe Company adopted dollar-value LIFO on January 1, 2019. The company produces four products and uses a single inventory pool. The company's beginning
Stone Shoe Company adopted dollar-value LIFO on January 1, 2019. The company produces four products and uses a single inventory pool. The company's beginning inventory consists of the following: Type Quantity Cost per Unit Total Cost Running 80,000 $16 $1,280,000 Tennis 30,000 15 450,000 Basketball 60,000 Soccer 14 840,000 40,000 17 680,000 210,000 $3,250,000 During 2019, the company has the following purchases and sales: Quantity Selling Price Type Purchased Cost per Unit Quantity Sold per Unit Running Tennis 150,000 $19 140,000 $40 130,000 16 100,000 38 Basketball Soccer 100,000 14 90,000 37 120,000 500,000 18 140,000 42 470,000 Required: 1. Compute the dollar-value LIFO cost of the ending inventory. Round the cost index to 4 decimal places and all other amounts to the nearest dollar.
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Answer To compute the dollarvalue LIFO cost of the ending inventory we first need to determine the cost index for each type of inventory The cost inde...Get Instant Access to Expert-Tailored Solutions
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