Book1 - given period are taken from the most recently...

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Steven O'Connor Acct. 301 5-Apr-11 P8-2 Inventory Net Sales Initial amounts $1,520,000 $1,200,000 $8,150,000 1 $- $- $(40,000) 2 $71,000 $71,000 $- 3 $30,000 $30,000 $- 4 $32,000 $- $(47,000) 5 $21,000 $- $- 6 $27,000 $- $- 7 $- $56,000 $- 8 $3,000 $6,000 $- Total adjustments $184,000.00 $163,000.00 $(87,000.00) Adjusted amounts $1,704,000 $1,363,000 $8,063,000 P8-11 a) Current $ Price Index Base Year $ 2003 $80,000 1.00 $80,000 2004 $115,500 1.05 $110,000 3005 $108,000 1.20 $90,000 2006 $131,300 1.30 $101,000 2007 $154,000 1.40 $110,000 2008 $174,000 1.45 $120,000 b) Dollar-value LIFO is an inventory method which values groups of inventory in layers of costs. Any goods sold during a
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Unformatted text preview: given period are taken from the most recently acquired group of good stock. Any goods remaining in inventory are assumed to be the oldest goods with the oldest prices. Divide the ending Inventory by the price index. Then, compute the di between the previous and the current years ending inventory. Subtra current years base-year inventory from the previous years. Then, put it in current year terms. Accounts Payable Adjustmentsincrease (decrease) Change From Prior Ye $- $30,000 $(20,000) $11,000 $9,000 $10,000 ds in ifference act the ear...
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Book1 - given period are taken from the most recently...

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