AE9-27 - 2010 Restate to base-year retail ($158,175 ÷...

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AE9-27 Correct.     (Dollar-Value LIFO Retail) The Springsteen Corporation adopted the dollar-value LIFO retail inventory method on January 1, 2009. At that time the  inventory had a cost of $61,560 and a retail price of $114,000. The following information is available.     Year-End   Inventory at   Retail Current Year Cost-Retail % Year-End Price Index   2009 $138,966   57% 106   2010 158,175   60% 111   2011 144,210   61% 115   2012 185,250   58% 125 The price index at January 1, 2009, is 100. Compute the ending inventory at December 31 of the years 2009–2012. AE9-27 2009 Restate to base-year retail ($138,966 ÷ 1.06) $131,100         Layers: 1. $114,000 × 1.00 ×  54% *= $61,560     2. $17,100 × 1.06 ×  57% = 10,332   Ending inventory $71,892         *$61,560 ÷ $114,000
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Unformatted text preview: 2010 Restate to base-year retail ($158,175 ÷ 1.11) $142,500 Layers: 1. $114,000 × 1.00 × 54% = $61,560 2. $17,100 × 1.06 × 57% = 10,332 3. $11,400 × 1.11 × 60% = 7,592 Ending inventory $79,484 2011 Restate to base-year retail ($144,210 ÷ 1.15) $125,400 Layers: 1. $114,000 × 1.00 × 54% = $61,560 2. $11,400 × 1.06 × 57% = 6,888 Ending inventory $68,448 2012 Restate to base-year retail ($185,250 ÷ 1.25) $148,200 Layers: 1. $114,000 × 1.00 × 54% = $61,560 2. $11,400 × 1.06 × 57% = 6,888 3. $22,800 × 1.25 × 58% = 16,530 Ending inventory $84,978...
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This note was uploaded on 11/30/2011 for the course ACC 101 taught by Professor B during the Spring '09 term at CUNY Baruch.

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AE9-27 - 2010 Restate to base-year retail ($158,175 ÷...

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