Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Webster Company adopted dollar-value LIFO on January 1, 2019. Webster produces three products: X, Y, and Z. Webster's beginning inventory consisted of the following:
Webster Company adopted dollar-value LIFO on January 1, 2019. Webster produces three products: X, Y, and Z. Webster's beginning inventory consisted of the following: Cost per Type Quantity Unit Total Cost X 30,000 $4.25 $127,500 Y 10,000 3.50 35,000 Z 25,000 2.00 50,000 65,000 $212,500 During 2019, Webster had the following purchases and sales: Type Quantity Purchased Cost Per Unit Quantity Sold Selling Price per Unit X 110,000 $4.75 90,000 $10.00 Y 100,000 3.75 85,000 7.50 Z 75,000 285,000 2.10 70,000 245,000 5.00 Required: 1. Compute the LIFO cost of the ending inventory assuming Webster uses a single inventory pool. Round cost index to four decimal places. Activate Window 65,000 $212,500 During 2019, Webster had the following purchases and sales: Quantity Cost Per Purchased Unit Quantity Sold Selling Price per Unit X 110,000 $4.75 90,000 $10.00 Y 100,000 3.75 85,000 7.50 Z 75,000 285,000 2.10 70,000 245,000 5.00 Required: 1. Compute the LIFO cost of the ending inventory assuming Webster uses a single inventory pool. Round cost index to four decimal places. 2. Compute the LIFO cost of the ending inventory assuming Webster uses three inventory pools. Round cost indexes to four decimal places. Round intermediate calculations to the nearest dollar. Also, if necessary, round final answers to the nearest dollar. Inventory X Pool = $ Inventory Y Pool = $ Inventory Z Pool = $ Total LIFO ending inventory cost = $ ?
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