00 70,000 14,000 1.05 14,700 84,700 3,500 2011 95,120

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Unformatted text preview: 00 70,000 14,000 1.05 14,700 84,700 3,500 2011 95,120 1.16 82,000 70,000 1.00 70,000 12,000 1.05 12,600 82,600 12,520 Dec. 31 Dec. 31 Dec. 31 Balance Sheet 2009 2010 2011 Inventory 70,000 $ 88,200 $ 95,120 $ LIFO Reserve- (3,500) (12,520) 70,000 $ 84,700 $ 82,600 $ Journal entry Cost of goods sold 3,500 9,020 LIFO Reserve (3,500) (9,020) Dollar-Value LIFO 8-9 Inventory at Inventory at Convert to Inventory End-of-Year Base-Year Base Acquisition at LIFO Year Cost Index Cost Layers Index Year Cost DVL Cost Reserve 2009 70,000 $ 1.00 70,000 $ 70,000 $ 1.00 70,000 $ 70,000 $ - $ 2010 88,200 1.05 84,000 70,000 1.00 70,000 14,000 1.05 14,700 84,700 3,500 2011 95,120 1.16 82,000 70,000 1.00 70,000 12,000 1.05 12,600 82,600 12,520 2012 108,000 1.20 90,000 70,000 1.00 70,000 12,000 1.05 12,600 8,000 1.20 9,600 92,200 15,800 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Balance Sheet 2009 2010 2011 2012 Inventory 70,000 $ 88,200 $ 95,120 $ 108,000 $ LIFO Reserve- (3,500) (12,520) (15,800) 70,000 $ 84,700 $ 82,600 $ 92,200 $ Journal entry Cost of goods sold 3,500 9,020 3,280 LIFO Reserve (3,500) (9,020) (3,280) 8-10 End of Chapter 8 – Part 3...
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00 70,000 14,000 1.05 14,700 84,700 3,500 2011 95,120 1.16...

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