Linton Corp. adopted the dollar-value LIFO (DVL) method on December 31, 2018 (base year). Information regarding...

  

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Linton Corp. adopted the dollar-value LIFO (DVL) method on December 31, 2018 (base year). Information regarding inventory for 2018 – 2020 is as follows: Ending Inventory at Current Prices (FIFO) $ 580,000 Date Price Index 12/31/18 100% or 1.0 12/31/19 715,000 110% or 1.10 12/31/20 739,200 112% or 1.12 Question: What should be the cost of inventory at 12/31/20 using the DVL method? Round all calculations to the nearest whole dollar. Reminder: show clear calculations to receive partial credit. Problem VI: (6 pts) Summerville Inc. has the following information available for November: Date Nov 1 Nov 5 Cost per unit $50 $60 Total Cost $3,500 1,800 Units Beginning inventory Purchase 70 30 Nov 8 Sale (40) Purchase Sale 4,950 Nov 20 90 $55 Nov 29 (120) Required: Compute the cost of goods sold and the cost of ending inventory, respectively, assuming the perpetual weighted-average method. Only the answers in the spaces will be graded. Clearly show calculations below or on scrap paper to receive partial credit. Important: For the “perpetual weighted-average" calculations, round per unit costs to the nearest penny. Perpetual Weighted-Average Accounting Check: Do your two answers add up to the total cost of goods available for sale? Cost of Goods Sold Cost of Ending Inventory Space for calculations: (add space or paper if necessary) Problem VII: (12 pts) King Inc. has the following information available for July: Date Units Cost per unit July 1 Beginning inventory 50 S120 July 6 Purchase 30 $130 July 9 Sale (70) July 20 Purchase 90 $140 July 31 Sale (80) Required: Compute the cost of goods sold and the cost of ending inventory under each of the following inventory method systems and assumptions. Only the answers in the spaces will be graded. Clearly show calculations below or on scrap paper to receive partial credit. 困 Accounting Check: Do your two answers for each method add Perpetual FIFO Periodic Perpetual LIFO LIFO Cost of Goods Sold up to the total cost of goods available for sale? Please note Cost of Ending Inventory errors can still occur even when accounting checks work out. Space for calculations: (add space or paper if necessary) Linton Corp. adopted the dollar-value LIFO (DVL) method on December 31, 2018 (base year). Information regarding inventory for 2018 – 2020 is as follows: Ending Inventory at Current Prices (FIFO) $ 580,000 Date Price Index 12/31/18 100% or 1.0 12/31/19 715,000 110% or 1.10 12/31/20 739,200 112% or 1.12 Question: What should be the cost of inventory at 12/31/20 using the DVL method? Round all calculations to the nearest whole dollar. Reminder: show clear calculations to receive partial credit. Problem VI: (6 pts) Summerville Inc. has the following information available for November: Date Nov 1 Nov 5 Cost per unit $50 $60 Total Cost $3,500 1,800 Units Beginning inventory Purchase 70 30 Nov 8 Sale (40) Purchase Sale 4,950 Nov 20 90 $55 Nov 29 (120) Required: Compute the cost of goods sold and the cost of ending inventory, respectively, assuming the perpetual weighted-average method. Only the answers in the spaces will be graded. Clearly show calculations below or on scrap paper to receive partial credit. Important: For the “perpetual weighted-average" calculations, round per unit costs to the nearest penny. Perpetual Weighted-Average Accounting Check: Do your two answers add up to the total cost of goods available for sale? Cost of Goods Sold Cost of Ending Inventory Space for calculations: (add space or paper if necessary) Problem VII: (12 pts) King Inc. has the following information available for July: Date Units Cost per unit July 1 Beginning inventory 50 S120 July 6 Purchase 30 $130 July 9 Sale (70) July 20 Purchase 90 $140 July 31 Sale (80) Required: Compute the cost of goods sold and the cost of ending inventory under each of the following inventory method systems and assumptions. Only the answers in the spaces will be graded. Clearly show calculations below or on scrap paper to receive partial credit. 困 Accounting Check: Do your two answers for each method add Perpetual FIFO Periodic Perpetual LIFO LIFO Cost of Goods Sold up to the total cost of goods available for sale? Please note Cost of Ending Inventory errors can still occur even when accounting checks work out. Space for calculations: (add space or paper if necessary)

Answer rating: 100% (QA)

answer v calculation of cost of inventory using DVL method date ending inventory at the end of the year price index inventory base year prices change from prior year 123118 580000 100 or 100 580000 x ... View the full answer