Coronado Company cans a variety of vegetable-type soups. Recently, the company decided to value its...
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Accounting
Coronado 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.
Date
Ending Inventory (End-of-Year Prices)
Price Index
Dec. 31, 2013
$84,600
100
Dec. 31, 2014
130,186
119
Dec. 31, 2015
125,256
136
Dec. 31, 2016
148,029
147
Dec. 31, 2017
168,112
158
Dec. 31, 2018
199,916
164
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. Compute the ending inventory for Richardson Company for 2013 through 2018 using dollar-value LIFO.
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