ACC410 E8-25 - E8-25(Dollar-Value LIFO) Presented below is...

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Unformatted text preview: E8-25(Dollar-Value LIFO) Presented below is information related to Martin Company.DateEnding Inventory(End-of-Year Prices)Price IndexDecember 31, 2007$80,000100December 31, 2008$111,300105December 31, 2009$108,000120December 31, 2010$122,200130December 31, 2011$147,000140December 31, 2010$176,900145Instructions:Compute the ending inventory for Martin Company for 2007 through 2012 using the dollar-value LIFO method.Step 1:The ending inventory must first be converted from current dollars to base-year dollars. This is done by dividing the ending inventory at current prcesDateEnding Inventory(End-of-Year Prices)Price IndexBase-Year $December 31, 2007$80,000100%=$80,000December 31, 2008$111,300105%=$106,000December 31, 2009$108,000120%=$90,0001December 31, 2010$122,200130%=$94,000December 31, 2011$147,000140%=$105,000December 31, 2010$176,900145%=$122,000.00Step 2:Next, the ending inventory at base-year prices is apportioned into layers, according to individual years in which the inventory was acquired.Next, the ending inventory at base-year prices is apportioned into layers, according to individual years in which the inventory was acquired....
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ACC410 E8-25 - E8-25(Dollar-Value LIFO) Presented below is...

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