Quicksilver adopted LIFO in January 1, 2010, when the inventory had a FIFO cost of $180, 000 ($10 per unit).At the end of 2010, inventory consisted of 18, 750 units at $12 per unit, and the ending inventory for 2011 consisted of 20, 000 units at $15 per unit.
Required:
a. Calculate the cost index to be used for 2010 and 2011 using the link-chain method.
b. Compute the endinginvent ory for 2010 and 2011 using dollar-value LIFO.

Question

Quicksilver adopted LIFO in January 1, 2010, when the inventory had a FIFO cost of $180, 000 ($10 per unit).At the end of 2010, inventory consisted of 18, 750 units at $12 per unit, and the ending inventory for 2011 consisted of 20, 000 units at $15 per unit.
Required:
 a. Calculate the cost index to be used for 2010 and 2011 using the link-chain method.
b. Compute the endinginvent ory for 2010 and 2011 using dollar-value LIFO.

Quizplus · Accepted Answer

The Answer of Quicksilver adopted LIFO in January 1, 2010, when the inventory had a FIFO cost of $180, 000 ($10 per unit).At the end of 2010, inventory consisted of 18, 750 units at $12 per unit, and the ending inventory for 2011 consisted of 20, 000 units at $15 per unit.
Required:
 a. Calculate the cost index to be used for 2010 and 2011 using the link-chain method.
b. Compute the endinginvent ory for 2010 and 2011 using dollar-value LIFO.

Quicksilver Adopted LIFO in January 1, 2010, When the Inventory