Question

Brief Exercise 8-8 Your answer is partially correct. Try again. Bramble Company had ending inventory at end-of-year cost of $135,700 at December 31, 2016: $165,528 at December 31, 2017; and $177,255 at December 31, 2018. The year-end price indexes were 100 at 12/31/16, 114 at 12/31/17, and 117 at 12/31/18 Compute the ending Inventory for Bramble Company for 2016 through 2018 using the dollar-value LIFO method. 2016 2017 2018 Ending Inventory 195,700 146530) Click If you would like to show Work for this question: Doen Show Work Question Attempts 6 of 10 used SAVE POR LATER SUBMIT ANSWER

Answer 1

Solution:

Computation of inventory at base year prices and change from prior year
Year	Inventory at end of year prices	Price index	Inventory at base year prices	Change from Prior Years
2016	$135,700.00	100	$135,700.00	$0.00
2017	$165,528.00	114	$145,200.00	$9,500.00
2018	$177,255.00	117	$151,500.00	$6,300.00

Computation of dollar value inventory - LIFO
Particulars	Amount
December 31, 2016:
$135,700*$1	$135,700
Inventory at Dec 31, 2016	$135,700
December 31, 2017:
$135,700*$1	$135,700
$9,500*$1.14	$10,830
Inventory at Dec 31, 2017	$146,530
December 31, 2018:
$135,700*$1	$135,700
$9,500*$1.14	$10,830
$6,300*1.17	$7,371
Inventory at Dec 31, 2018	$153,901