Question: Kingston Company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company

Kingston Company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1, 2021, with an inventory of $150,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows:

Ending Inventory Year Ended Cost Index December 31 at Year-End Costs (Relative

Required:Calculate inventory amounts at the end of each year.

Ending Inventory Year Ended Cost Index December 31 at Year-End Costs (Relative to Base Year) $200,000 2021 1.08 2022 245,700 1.17 2023 235,980 1.14 2024 228,800 1.10

Step by Step Solution

★★★★★

3.46 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Date Ending Inventory at Base Year Cost 112021 150000 100 12312021 20... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Intermediate Accounting Questions!

Long-term debt ratio 0.3 Times interest earned 8.0 Current ratio 1.1 Quick ratio 1.0 Cash ratio 0.3 Inventory turnover 4.0 Average collection period 73 days 1.A. Use the above information from the...

On January 1, 2014, Bonanza Wholesalers Inc. adopted the dollar-value LIFO inventory method for income tax and external financial reporting purposes. However, Bonanza continued to use the FIFO...

The Holiday Corporation, a private company, began operations on January I, 2011. During its first three years of operations, Holiday reported net income and declared dividends as follows: The...

The Great Graphics Group began operations on January 1, 2010. At the end of its second year of operations, and before any adjustments had been made, the trial balance was as follows: Analysis reveals...

Kingston Company uses the dollar-value LIFO method of computing Inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 2021, with...

Questions are on the pictures. Kingston Company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending Inventory to base year. The company began...

A company uses the dollar - value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1 , 2 0 2 4 ,...

need help with incorrect parts A company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began...

A company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1, 2024, with an...

What is the future direction of the ERP market? Research this issue and write a brief paper outlining the key issues.

Let f be a convex function on an open set S which is bounded above by M in a neighborhood of x0. That is, there exists an open ball Br(x0) containing x0 such that f is bounded on B(x0). Let x1 be an...

Which of the following statements is TRUE? ( I ) The secondary mortgage market enables mortgage banking companies to sell existing mortgages and thereby to replenish funds with which new loans can be...

What are some of the barriers to international acquisitions?

Air France-KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF's financial statements and disclosure notes for the year...

At the end of 2018, Barker Corporation's preliminary trial balance indicated a current ratio of 1.2. Management is contemplating paying some of its accounts payable balance before the end of the...

The trial balance for K and J Nursery, Inc., listed the following account balances at December 31, 2018, the end of its fiscal year: cash, $16,000; accounts receivable, $11,000; inventories, $25,000;...

When there is a recession (a fall in output) and prices are increasing, and this situation is caused by adverse supply shocks, the term economists use to describe it is d. stagnation b. inflation o...

Operation system course help me with these questions please 1- A. Write at least 5 definitions of Operating System 2- Write names and the main concepts of at least 5 storage types in a computer (1...

Two cards are drawn at random [without replacement) from a regular deck of 52 cards. what is the probability that the rst card is red and the second carcl is the heart