Question Details

Compute the price index for 2010 



*Pr. 1—Dollar-value LIFO.
Aber Company manufactures one product. On December 31, 2009, Aber adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was $180,000.  Inventory data are as follows:
		Inventory at	Price index
	Year	year-end prices	(base year 2009)
	2010	$252,000	1.05
	2011	368,000	1.15
	2012	387,500	1.25

Instructions
Compute the inventory at December 31, 2010, 2011, and 2012, using the dollar-value LIFO method for each year.

*Pr. 2—Dollar-value LIFO.
Gott Company adopted the dollar-value LIFO inventory method on 12/31/09. On this date, its inventory consisted of the following items.
	Item	Number of Units	Cost Per Unit	Total Cost
	X	200	$2.00	$   400
	Y	600	4.50	  2,700
				$3,100

Additional information:		       December 31	
			  2010		 2011
	1.	Units of X in inventory	300	400
	2.	Cost of each X unit	$3.00	$3.25
	3.	Units of Y in inventory	800	1,200
	4.	Cost of each Y unit	$5.50	$6.00

Instructions
(a)	Compute the price index for 2010 .  Round to 2 decimal places.
(b)	Calculate the 12/31/10 inventory.  Label all numbers.
(c)	Compute the price index for 2011.  Round to 2 decimal places.
(d)	Calculate the 12/31/11 inventory.  Label all numbers .



Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help