The information below is provided for the only two inventory items held by Hammond, Inc.: Base Jan.
Question:
The information below is provided for the only two inventory items held by Hammond, Inc.:
| Base |
| ||
| Jan. 1, 2019 | Dec. 31, 2019 | ||
| No. of | Cost per | No. of | Cost per |
Item | Units | Unit | Units | Unit |
Tapes | 300 | $25.00 | 400 | $30.00 |
Extenders | 800 | 40.00 | 1,000 | 52.00 |
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The company uses double-extension dollar-value LIFO with only one pool.
Required:
a. Calculate the cost index for 2019. Round to the nearest hundredth for decimals.
b. Calculate December 31, 2019, ending inventory for Hammond using dollar-value LIFO. Round to the nearest dollar.
105. Cabinets for Less uses FIFO for internal reporting purposes and LIFO for financial and income tax purposes. At the end of 2020, the following information was obtained from the inventory records:
| 2019 | 2020 |
Ending inventory, FIFO | $78,650 | $93,250 |
Ending inventory, LIFO | 68,500 | 78,350 |
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Required:
Prepare the necessary entry to convert to LIFO at the end of 2019.
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver