Question 1 - Sheridan Company had ending inventory at end-of-year prices of $109,600 at December 31, 2016; $135,700 at December 31, 2017; and $146,792 at December 31, 2018. The year-end price indexes were 100 at 12/31/16, 115 at 12/31/17, and 118 at 12/31/18.
Compute the ending inventory for Sheridan Company for 2016 through 2018 using the dollar-value LIFO method.
Question 2 - Indigo, Inc. uses the dollar-value LIFO method of computing its inventory. Data for the past 3 years follow.
|
Year Ended
December 31
|
Inventory at Current-Year Cost
|
Price Index
|
|
2016
|
$20,000
|
100
|
|
2017
|
22,464
|
108
|
|
2018
|
26,334
|
114
|
Compute the value of the 2017 and 2018 inventories using the dollar-value LIFO method.