PART A: Dollar-Value LIFO
Richardson Company cans a variety of vegetables and soups. On December 31, 2011, the company
decided to adopt dollar-value LIFO for valuing its inventories. Using the following information,
compute the value of ending inventory for Richardson Company for the years 2011 to 2016.
Date
Ending Inventory
(End-of Year Prices)
Price Index
12/31/2011
$80,000
1.00
12/31/2012
$111,300
1.05
12/31/2013
$108,000
1.20
12/31/2014
$128,700
1.30
12/31/2015
$147,000
1.40
12/31/2016
$174,000
1.50