Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / Pharoah Company had ending inventory at end-of-year prices of $183,000 at December 31, 2016; 204,600 at December 31, 2017; and $213,500 at December 31, 2018
Pharoah Company had ending inventory at end-of-year prices of $183,000 at December 31, 2016; 204,600 at December 31, 2017; and $213,500 at December 31, 2018. The year-end price indexes were 100 at 12/31/16, 106 at 12/31/17, and 110 at 12/31/18.
Compute the ending inventory for Pharoah Company for 2016 through 2018 using the dollar-value LIFO method.
2016:-
Ending Inventory =$183,000
2017:-
=> $204600 / (100%+ 6%) = $ 193,018.87
=> $183,000 * 1 = $183,000
=> ($ 193,018.87 -$183,000) * (100%+ 6%) = $10,620
Ending Inventory = $183,000+ $10,620
= $193,620
2018:-
=> $213,500 /(100%+ 10%) = $194,090.91
=> $183,000 * 1 = $183,000
=> ($ 193,018.87 -$183,000) * (100%+ 6%) =$10,620
=> ($194,090.91- $183,000- ($ 193,018.87 -$183,000)) *(100%+ 10%) = $1,179.24
Ending Inventory = $183,000+ $10,620+ $1,179.24
= 194,799.24
