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Question 1 - Sheridan Company had ending inventory at end-of-year prices of $109,600 at December 31, 2016; $135,700 at December 31, 2017; and $146,792 at December 31, 2018. The year-end price indexes were 100 at 12/31/16, 115 at 12/31/17, and 118 at 12/31/18.
Compute the ending inventory for Sheridan Company for 2016 through 2018 using the dollar-value LIFO method.
Question 2 - Indigo, Inc. uses the dollar-value LIFO method of computing its inventory. Data for the past 3 years follow.
Year Ended December 31
Inventory at Current-Year Cost
Price Index
2016
$20,000
100
2017
22,464
108
2018
26,334
114
Compute the value of the 2017 and 2018 inventories using the dollar-value LIFO method.
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