RetExercise 8-27 (Algo) Dollar-value LIFO (LO8-8]Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value LIFO inventory method. Theinventory on that date using the dollar-value LIFO method was $201,000. Inventory data are as follows:Ending Inventory atEnding Inventory atYearYear-End CostsBase Year Costs20222023$233,100302,450303,600$222,000263,000253,0002024Required:Compute the inventory at December 31, 2022, 2023, and 2024, using the dollar-value LIFO method. (Round "Year end cost index" to2 decimal places.)X Answer is not complete.Inventory Layers Converted to Base Year CostInventoryDVL CostInventory Layers Converted to CostInventoryat Year-EndCostYear-EndCostIndexInventoryLayers atBase YearInventoryLayers atBase YearCostYear-InventoryLayersConvertedto CostDateEndCostIndexCost12/31/2021220,000 X273,000 XI$1220,000 X BaseIS220,000 8220,000 S220,00012/31/20221.05$260,000Base220,000 81220,000 X2022$40,000 X1.05$42,000 X $262,00012/31/2023$368,0001.15320,000 O Base$$ 220,000 X%3D1$4220,000 X202240,000 X1.05$42,000 X2023331 000 Required:Compute the inventory at December 31, 2022, 2023, and 2024, using the dollar-value LIFO method. (Round "Year end cost index" to2 decimal places.)X Answer is not complete.Inventory Layers Converted to Base Year CostInventory Layers Converted to CostInventoryDVL CostYear-Inventoryat Year-EndCostInventoryLayers atBase YearCostInventoryLayers atBase YearCostYear-EndCostIndexInventoryLayersConvertedto CostDateEndCostIndex12/31/2021$4220,000 X1Is220,000 X Base220,000 X$220,000 X $%3D12/31/2022$273,000 X220,0001.05IS260,000 X BaseSS 220,000 x1220,000 X2022$40,000 X1.05$42,000 X $%3D262,00012/31/2023$ 368,000 X1.15320,000 X Base%3D220,000 X$220,000 X%3D2022$40,000 X1.052$42,000 X2023IS60,000 X1.1569,000 O $331,00012/31/2024$372,000 X1.20310,000 X Base220,000 X2$220,000 X2022IS40,000 X1.05$42,000 X202350,000 X1.1557,500 X20241.202$2$319,500

Name: RetExercise 8-27 (Algo) Dollar-value LIFO (LO8-8]Mercury Company has
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Description: RetExercise 8-27 (Algo) Dollar-value LIFO (LO8-8]Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value LIFO inventory method. Theinventory on that date using the dollar-value LIFO method was $201,000. In

Solution: To compute dollar value LIFO inventory, first we compute price index for every year by…

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Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $201,000. Inventory data are as follows: Ending Inventory at Year-End Costs $233,100 302,450 303,600 Ending Inventory at Year Base Year Costs 2022 2023 $222,000 263,000 253,000 2024 Required: Compute the inventory at December 31, 2022, 2023, and 2024, using the dollar-value LIFO method. (Round "Year end cost index" to 2 decimal places.)

Mercury Company has only one inventory pool. On December 31, 2021, Mercury adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $201,000. Inventory data are as follows: Ending Inventory at Year-End Costs $233,100 302,450 303,600 Ending Inventory at Year Base Year Costs 2022 2023 $222,000 263,000 253,000 2024 Required: Compute the inventory at December 31, 2022, 2023, and 2024, using the dollar-value LIFO method. (Round "Year end cost index" to 2 decimal places.)

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Chapter18: Accounting Periods And Methods

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