Reference no: EM131775865

Dock Inc. adopted the dollar-value LIFO inventory method as of January 1, 2015. A single inventory pool and an internally computed price index are used to compute Brock's LIFO inventory layers. Information about Dock's dollar value inventory follows:

Inventory
Date	At base cost Year cost	At current Year cost	At dollar Value LIFO
1/1/2015	$60,000	$ 60,000	$60,000
2015 layer	7,500	21,000	9,000
12/31/2015	67,500	81,000	69,000
2016 layer	22,500	39,000	?
12/31/2016	$90,000	$120,000	?

Required: What is Dock's dollar value LIFO inventory at December 31, 2016?

Crunch Company uses the conventional retail inventory method to account for inventory. The following information related to 2016 operations:

	Average
	Cost	Retail
Beginning inventory and purchases	$450,000	$690,000
Net markups		30,000
Net markdowns		45,000
Sales		585,000

Required: What amount should be reported as cost of sales for 2016?

Quince Inc. uses the periodic inventory costing system. The Quince ending merchandise inventory official count at December 31, 2017 totaled $120,000. However, the balance in the merchandise inventory general ledger account at December 31, 2017 was $125,000. What was the amount of the over-or-understatement for cost of goods sold and gross profit for 2017?