Question

Exercise 8-23 Your answer is partially correct. Try again. The following information relates to the Stellar Company. Ending Inventory (End-of Year Price Date Prices) December 31, 2013 December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017 $69,400 102,080 110,208 123,816 116,058 Index 100 116 128 132 138 Use the dollar-value LIFO method to compute the ending inventory for Stellar C Ending Inventory 2013 69400 2014 90976 2015 88772 2016 98632 2017 86452 Click if you would like to Show Work for this question: Open Show Wor LINK TO TEXT

Answer 1

Answer

• All working forms part of the answer
• You have successfully calculated all the values for all years except for Year 2016.
• I’m helping you with the same [2016 Value]
• Working:

Price Index	Ending Inventory	Inventory at Base Year	Change from Prior Year
1	$        69,400.00	$        69,400.00	$                       -
1.16	$      102,080.00	$        88,000.00	$        18,600.00
1.28	$      110,208.00	$        86,100.00	$        (1,900.00)
1.32	$      123,816.00	$        93,800.00	$          7,700.00
1.38	$      116,058.00	$        84,100.00	$        (9,700.00)

• Dollar Value LIFO calculation for Year 2016

Inventory	Price Index	Ending Inventory Dollar Value LIFO
$        69,400.00 [base year inventory]	1	$        69,400.00
$        16,700.00 [18600 – 1900]	1.16	$        19,372.00
$          7,700.00 [2016]	1.32	$        10,164.00
$        93,800.00 [total = value equal to 2016 Inventory at base Year]		$        98,936.00

• Hence, correct figure to be filled in Year 2016 = $ 98,936.