PLEASE ANSWER P8.11 PART A ONLY PLEASE!!! 100 18.11 (LO...
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PLEASE ANSWER P8.11 PART A ONLY PLEASE!!!
100 18.11 (LO 4) Writing (Dollar-Value LIFO) Richardson Company cans a variety of vegetable-type soups. Recently, the company decided to value its inventories using dollar-value LIFO pools. The clerk who accounts for inventories does not understand how to value the inventory pools using this new method, so, as a private consultant, you have been asked to teach him how this new method works. He has provided you with the following information about purchases made over a 6-year period. Ending Inventory Date (End-ofYear Prices) Price Index Dec 31, 2016 $ 80,000 Dec 31, 2017 111,300 105 Dec 31, 2018 108,000 120 Dec 31, 2019 128,700 130 Dec 31, 2020 147,000 140 Dec 31, 2021 174,000 145 You have already explained to him how this inventory method is maintained, but he would feel better about it if you were to leave him detailed instructions explaining how these calculations are done and why he needs to put all inventories at a base-year value. Instructions a. Compute the ending inventory for Richardson Company for 2016 through 2021 using dollar-value LIFO
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