Question Details

What is the 2012 inventory balance using dollar-value LIFO 



1.	What is the cost of the ending inventory at December 31, 2012 under dollar-value LIFO?
a.	$256,240.
b.	$254,800.
c.	$250,000.
d.	$263,400.
	
2.	Wise Company adopted the dollar-value LIFO method on January 1, 2010, at which time its inventory consisted of 6,000 units of Item A @ $5.00 each and 3,000 units of Item B @ $16.00 each. The inventory at December 31, 2010 consisted of 12,000 units of Item A and 7,000 units of Item B. The most recent actual purchases related to these items were as follows:
	Quantity
		Items	Purchase Date	Purchased	Cost Per Unit
	A	12/7/10	2,000	$ 6.00
	A	12/11/10	10,000	5.75
	B	12/15/10	7,000	17.00
		Using the double-extension method, what is the price index for 2010 that should be computed by Wise Company?
a.	108.33%
b.	109.59%
c.	111.05%
d.	220.51%

	3.	Web World began using dollar-value LIFO for costing its inventory last year. The base year layer consists of $250,000. Assuming the current inventory at end of year prices equals $345,000 and the index for the current year is 1.10, what is the ending inventory using dollar-value LIFO?
a.	$345,000.
b.	$320,000.
c.	$313,636.
d.	$379,500.

4.	Willy World began using dollar-value LIFO for costing its inventory two years ago. The ending inventory for the past two years in end-of-year dollars was $100,000 and $150,000 and the year-end price indices were 1.0 and 1.2, respectively. Assuming the current inventory at end of year prices equals $215,000 and the index for the current year is 1.25, what is the ending inventory using dollar-value LIFO?
a.	$177,500.
b.	$186,400.
c.	$190,000.
d.	$188,750.

5.	Opera Corp. uses the dollar-value LIFO method of computing its inventory cost. Data for the past four years is as follows:

	Year ended	Inventory at	Price
	December 31.	End-of-year Prices	Index
	       2010   	$ 65,000	1.00
	2011	126,000	1.05
	2012	135,000	1.10
	What is the 2010 inventory balance using dollar-value LIFO?
a.	$65,000.
b.	$61,904.
c.	$122,727.
d.	$135,000.

6.	Opera Corp. uses dollar-value LIFO method of computing its inventory cost. Data for the past four years is as follows:

	Year ended	Inventory at	Price
	December 31.	End-of-year Prices	Index
	2010	   $   65,000	1.00
	2011	126,000	1.05
	2012	135,000	1.10
	What is the 2011 inventory balance using dollar-value LIFO?
a.	$126,000.
b.	$128,500.
c.	$122,750.
d.	$125,750.

	7.	Opera Corp. uses dollar-value LIFO method of computing its inventory cost. Data for the past four years is as follows:

	Year ended	Inventory at	Price
	December 31.	End-of-year Prices	Index
	2010	$   65,000	1.00
	2011	126,000	1.05
	2012	135,000	1.10
	What is the 2012 inventory balance using dollar-value LIFO ?
a.	$135,000.
b.	$128,500.
c.	$122,750.
d.	$125,750.





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