Question
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (2) QUESTIONS: Sparky Company adopted Dollar Value LIFO (DVL) on January 1, 2016 for its one inventory
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (2) QUESTIONS: Sparky Company adopted Dollar Value LIFO (DVL) on January 1, 2016 for its one inventory pool. The inventory's value on this date was $360,000. The ending inventory valued at year-end costs for 2016, 2017 and 2018 are reported below along with the price index for each year:
Year | Ending Inventory at Year-end Costs | Specific Price Index |
Dec 31, 2016 | $407,570 | 106 |
Dec 31, 2017 | $439,450 | 110 |
Dec 31, 2018 | $427,800 | 115 |
a. Determine the Ending Inventory value to be reported on Sparky's balance sheet dated December 31, 2018 using DVL: $____________
Using the information above, answer the following:
If Sparky purchased $1,250,000 of goods held in inventory for 2018, determine COGS for the year ended December 31, 2018 using Dollar Value LIFO.
$_________________________
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