HomeworkFall2009Solutions 27

# HomeworkFall2009Solutions 27 - \$3,360,315 \$3,349,500 x...

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HOMEWORK - Fall 2009 27. (4 points) Presented below is information related to T Company. EI @ recent costs Index EI @ base costs Buildup (liquidation) in base \$ 12-31-01 \$3,349,500 100.0 12-31-02 \$3,460,800 103.0 \$3,360,000 \$10,500 12-31-03 \$3,484,000 104.0 \$3,350,000 \$(10,000) 12-31-04 \$3,490,300 104.5 \$3,340,000 \$(10,000) 12-31-05 \$3,582,800 106.0 \$3,380,000 \$40,000 12-31-06 \$3,587,000 105.5 \$3,400,000 \$20,000 Compute the ending inventory for T for 12-31-02 through 12-31-06 using the dollar-value LIFO method. 12-31-02 \$3,349,500 x 1.000 = \$3,349,500 \$ 10,500 x 1.030 = 10,815
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Unformatted text preview: \$3,360,315 12-31-03 \$3,349,500 x 1.000 = \$3,349,500 \$ 500 x 1.030 = 515 \$3,350,015 12-31-04 \$3,340,000 x 1.000 = \$3,340,000 12-31-03 \$3,340,000 x 1.000 = \$3,340,000 \$ 40,000 x 1.060 = 42,400 \$3,382,400 12-31-03 \$3,340,000 x 1.000 = \$3,340,000 \$ 40,000 x 1.060 = 42,400 \$ 20,000 x 1.055 = 21,100 \$3,403,500 Assume that net purchases during 2006 totaled \$54,650,000. Compute COGS for the year ended 12-31-06. BI \$ 3,382,400 + Purchases \$54,650,000 COGAS \$58,032,400- EI \$ 3,403,500 COGS \$54,628,900 1...
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