Reference no: EM132743226
Question - One-Stop Shopping Mart began business on January 1, 2018, and immediately began to use the Dollar-Value LIFO method to account for Inventory. The initial "current cost" of their Inventory was $ 800,000.
In order to implement the method, One-Stop decided a unique price index for purposes of measuring inflation. Since One-Stop created the index, they set the value @ 100 on January 1, 2018.
Various information for One-Stop Shopping is as follows:
|
|
Inventory @ "Current Cost"
|
Price Index
|
|
January 1, 2018
|
$800,000
|
100
|
|
December 31, 2018
|
990,000
|
110
|
|
December 31, 2019
|
1,104,000
|
115
|
Required -
A. At what amount will One-Stop Shopping Mart report their Ending Inventory on their December 31, 2018 Balance Sheet?
B. If One-Stop, during the year-ending December 31, 2019, had total Inventory purchases of $ 3,000,000, what is "Cost of Goods Sold" for the year ending December 31, 2019?