Dollar-Value LIFO Richardson Company cans a variety of vegetable-type soups.

Dollar-Value LIFO Richardson Company cans a variety of vegetable-type soups. Recently, the company decided to value its inventories using dollar-value LIFO pools. The clerk who accounts for inventories does not understand how to value the inventory pools using this new method, so, as a private consultant, you have been asked to teach him how this new method works. He has provided you with the following information about purchases made over a 6-year period. You have already explained to him how this inventory method is maintained, but he would feel better about it if you were to leave him detailed instructions explaining how these calculations are done and why he needs to put all inventories at a base-year value.

(a) Compute the ending inventory for Richardson Company for 2006 through 2011 using dollar-value LIFO.

(b) Using your computation schedules as your illustration, write a step-by-step set of instructions explaining how the calculations are done. Begin your explanation by briefly explaining the theory behind this inventory method, including the purpose of putting all amounts into base-year pricelevels.

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Internal Indexes ”Dollar-Value LIFO Presented below is information related to Kaisson

Internal Indexes Dollar-Value LIFO Presented below is information related to Kaisson Corporation for the last 3 years. Compute the ending inventories under the dollar-value LIFO method for 2009, 2010, and 2011. The base period is January 1, 2009, and the beginning inventory cost at that date was $45,000. Compute indexes to two decimal places.

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Internal Indexes Dollar-Value LIFO On January 1, 2010, Bonanza Wholesalers Inc.

Internal Indexes”Dollar-Value LIFO On January 1, 2010, Bonanza Wholesalers Inc. adopted the dollar-value LIFO inventory method for income tax and external financial reporting purposes. However, Bonanza continued to use the FIFO inventory method for internal accounting and management purposes. In applying the LIFO method, Bonanza uses internal conversion price indexes and the multiple pools approach under which substantially identical inventory items are grouped into LIFO inventory pools. The following data were available for inventory pool no. 1, which comprises products A and B, for the 2 years following the adoption of LIFO.
(a) Prepare a schedule to compute the internal conversion price indexes for 2010 and 2011. Round indexes to two decimal places
(b) Prepare a schedule to compute the inventory amounts at December 31, 2010 and 2011, using the dollar-value LIFO inventory method.

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ollar-Value LIFO Norman Televisions produces television sets in three categories:

Dollar-Value LIFO Normans Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2010, Norman adopted dollar-value LIFO and decided to use a single inventory pool. The companyâs January 1 inventory consists of. During 2010, the company had the following purchases and sales. Round to four decimals

(a) Compute ending inventory, cost of goods sold, and gross profit.

(b) Assume the company uses three inventory pools instead of one. Repeat instruction(a).

Financial Statement Effects of FIFO and LIFO the management of Tritt Company

Financial Statement Effects of FIFO and LIFO the management of Tritt Company has asked its accounting department to describe the effect upon the company’s financial position and its income statements of accounting for inventories on the LIFO rather than the FIFO basis during 2010 and 2011. The accounting department is to assume that the change to LIFO would have been effective on January 1, 2010, and that the initial LIFO base would have been the inventory value on December 31, 2009. Presented below are the company’s financial statements and other data for the years 2010 and 2011 when the FIFO method was employed. Other data:

1. Inventory on hand at December 31, 2009, consisted of 40,000 units valued at $3.00 each.

2. Sales (all units sold at the same price in a given year):

2010—150,000 units @ $6.00 each 2011—180,000 units @ $7.50 each

3. Purchases (all units purchased at the same price in given year):

2010—150,000 units @ $3.50 each 2011—180,000 units @ $4.40 each

4. Income taxes at the effective rate of 40% are paid on December 31 each year. Name the account(s) presented in the financial statements that would have different amounts for 2011 if LIFO rather than FIFO had been used, and state the new amount for each account that is named. Show computations.

(CMAadapted)

Compute FIFO, LIFO, Average Cost Periodic and Perpetual Ehlo Company is a multiproduct

Compute FIFO, LIFO, Average Cost Periodic and Perpetual Ehlo Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye. Compute cost of goods sold, assuming Ehlo uses:
(a) Periodic system, FIFO cost flow. 

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(b) Perpetual system, FIFO cost flow.
(c) Periodic system, LIFO cost flow.
(d) Perpetual system, LIFO cost flow.
(e) Periodic system, weighted-average cost flow.
(f) Perpetual system, moving-average costflow.

Compute FIFO, LIFO, and Average Cost some of the information found on a detail inventory

Compute FIFO, LIFO, and Average Cost some of the information found on a detail inventory card for Slatkin Inc. for the first month of operations is as follows.

(a) From these data compute the ending inventory on each of the following bases. Assume that perpetual inventory records are kept in units only. Carry unit costs to the nearest cent and ending inventory to the nearest dollar.

(1) First-in, first-out (FIFO).

(2) Last-in, first-out (LIFO).

(3) Average cost.

(b) If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, would the amounts shown as ending inventory in 1, 2, and 3 above be the same? Explain andcompute.