Question Details

What is Hay Company- ending inventory 


Use the following information for 1 and 2

RF Company had January 1 inventory of $100,000 when it adopted dollar-value LIFO. During the year, purchases were $600,000 and sales were $1,000,000. December 31 inventory at year-end prices was $143,360, and the price index was 112.

1.	What is RF Company- ending inventory?
a.	$100,000.
b.	$128,000.
c.	$131,360.
d.	$143,360.

2.	What is RF Company- gross profit?
a.	$428,000.
b.	$431,360.
c.	$443,460.
d.	$868,640.

Use the following information for 3 and 4

Hay Company had January 1 inventory of $100,000 when it adopted dollar-value LIFO. During the year, purchases were $600,000 and sales were $1,000,000. December 31 inventory at year-end prices was $126,500, and the price index was 110.

	3.	What is Hay Company- ending inventory ?
a.	$110,000.
b.	$115,000.
c.	$116,500.
d.	$126,500.

4.	What is Hay Company- gross profit?
a.	$415,000.
b.	$416,500.
c.	$426,500.
d.	$883,500.

Use the following information for questions 5 through 6.
Gross Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2009. Its inventory at that date was $220,000 and the relevant price index was 100. Information regarding inventory for subsequent years is as follows:
			   Inventory at	   Current
	Date		Current Prices		Price Index
December 31, 2010	$256,800	107
December 31, 2011	290,000	125
December 31, 2012	325,000	130

	5.	What is the cost of the ending inventory at December 31, 2010 under dollar-value LIFO?
a.	$240,000.
b.	$256,800.
c.	$241,400.
d.	$235,400.
	6.	What is the cost of the ending inventory at December 31, 2011 under dollar-value LIFO?
a.	$232,000.
b.	$231,400.
c.	$232,840.
d.	$240,000.



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