Presented below is information related to Dino Radja Company. Date Ending Invent
ID: 2445251 • Letter: P
Question
Presented below is information related to Dino Radja Company.
Date
Ending Inventory
(End-of-Year Prices)
Price
Index
December 31, 2011
$ 72,600
100
December 31, 2012
161,184
138
December 31, 2013
159,826
157
December 31, 2014
181,220
170
December 31, 2015
215,391
183
December 31, 2016
252,700
190
Compute the ending inventory for Dino Radja Company for 2011 through 2016 using the dollar-value LIFO method.
Ending Inventory
2011
2012
$
2013
$
2014
$
2015
$
2016
$
Date
Ending Inventory
(End-of-Year Prices)
Price
Index
December 31, 2011
$ 72,600
100
December 31, 2012
161,184
138
December 31, 2013
159,826
157
December 31, 2014
181,220
170
December 31, 2015
215,391
183
December 31, 2016
252,700
190
Explanation / Answer
Dino Radja Company for 2011 through 2016 using the dollar-value LIFO method. Date Inventory at Base Year Cost Inventory Layers Year of Layer Inventory at added year cost Inventory (Dollar Value LIFO) December 31,2011 $72,600 $72,600 Base Year $72,600 $72,600 December 31,2012 $116,800 $72,600 Base Year $72,600 $44,200 2012 $60,996 $133,596 December 31,2013 $101,800 $72,600 Base Year $72,600 $29,200 2012 $40,296 $112,896 December 31,2014 $106,600 $72,600 Base Year $72,600 $29,200 2012 $40,296 $4,800 2014 $8,160 $121,056 December 31,2015 $117,700 $72,600 Base Year $72,600 $29,200 2012 $40,296 $4,800 2014 $8,160 $11,100 2015 $20,313 $141,369 December 31,2016 $133,000 $72,600 Base Year $72,600 $29,200 2012 $40,296 $4,800 2014 $8,160 $11,100 2015 $20,313 $15,300 2016 $29,070 $170,439 Working 161184*(100/138) = 116800 44200*(138/100) = 60996 159826*(100/157)=101800 29200*1.38=40296 181220*(100/170)=106600 4800*(170/100)=8160 215391*(100/183)=117700 11100*(183/100)=20313 252700*(100/190)=133000 15300*(190/100)=29070