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Joe the Grocer Markets. Inc. (JTGM) adopted the dollar-value LIFO

Joe the Grocer Markets. Inc. (JTGM) adopted the dollar-value LIFO inventory method using 2018 as the base

Question:

Joe the Grocer Markets. Inc. (JTGM) adopted the dollar-value LIFO inventory method using 2018 as the base year. JTGM uses FIFO for its internal books. Information related to its inventory is presented in the following table:

Ending Inventory at End-of Year Pricesper Internal Books $ 870,000 Cumulative Price Index Year 2018 100 2019 102 980,000

Required

a. Compute JTGM's ending inventory under the dollar-value LIFO method for the years 2018 through 2020.

b. Prepare the journal entries for 2019 and 2020 to adjust inventory to the dollar-value LIFO basis.

c. Determine the ending balance of the LIFO reserve for 2019 and 2020.

Transcribed Image Text:

Ending Inventory at End-of Year Pricesper Internal Books $ 870,000 Cumulative Price Index Year 2018 100 2019 102 980,000 1,050 000 103 2020

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Related Book For answer-question

Intermediate Accounting

ISBN: 978-0134730370

2nd edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

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Question Posted: Jun 27, 2019 07:28 AM

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