Exercise-4 (Ending inventory using dollar value LIFO method)

Posted in: Inventory costing methods (exercises)
By: Rashid Javed | Updated on: July 12th, 2023

Rehan Company presents you the following data:

exercise-4-icm-img1

Required: Compute the value of inventory on December 31, 2015 and December 31, 2016 using dollar-value LIFO method.

Solution:

exercise-4-icm-img2

*Inventory at base year prices = Inventory at end of year prices / Price index

  • December 31, 2014: $39,500/1.00 = $39,500
  • December 31, 2015: $43,416/1.08 = $40,200
  • December 31, 2016: $51,870/1.14 = $45,500

Dollar-value LIFO inventory:

exercise-4-icm-img3
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4 Comments on Exercise-4 (Ending inventory using dollar value LIFO method)
  1. Israel

    Very interesting

    Reply
  2. Honeta Tony

    I am very much appreciated for the help. It’s helped me a lot.

    Reply
  3. Ongaya Ambunya

    Very impressive work 🙏

    Reply
  4. FRANK

    Thank you very much!

    Reply

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