Nash Company cans a variety of vegetable-type soups. Recently,the company decided to value its inventories using dollar-valueLIFO pools. The clerk who accounts for inventories does notunderstand how to value the inventory pools using this new method,so, as a private consultant, you have been asked to teach him howthis new method works.
He has provided you with the following information about purchasesmade over a 6-year period.
Date | | Ending Inventory
(End-of-Year Prices) | | Price Index |
Dec. 31, 2013 | | | $72,900 | | | 100 |
Dec. 31, 2014 | | | 136,896 | | | 124 |
Dec. 31, 2015 | | | 133,906 | | | 142 |
Dec. 31, 2016 | | | 158,202 | | | 153 |
Dec. 31, 2017 | | | 180,345 | | | 165 |
Dec. 31, 2018 | | | 213,921 | | | 171 |
You have already explained to him how this inventory method ismaintained, but he would feel better about it if you were to leavehim detailed instructions explaining how these calculations aredone and why he needs to put all inventories at a base-yearvalue.
Compute the ending inventory for Richardson Company for 2013through 2018 using dollar-value LIFO.
Ending inventory:
