Get the answers you need at Westonci.ca, where our expert community is always ready to help with accurate information. Explore thousands of questions and answers from a knowledgeable community of experts ready to help you find solutions. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

On January 1, 2021, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $100,000. The ending inventory, valued at year-end costs, and the relative cost index for each of the next three years is below:
Year-end Ending inventory at year-end costs Cost Index
2021 $126,000 1.05
2022 143,000 1.10
2023 153,600 1.20
In determining the inventory balance for Badger to report in its 12/31/2022 balance sheet:____.
A. $130,500.
B. $125,650.
C. $124,500.
D. $101,500.


Sagot :

Answer:

$133,000

Explanation:

The computation of the inventory balance is shown below;

For 2022

= $143,000 ÷ 1.10

= $130,000

This involved two layes, the first one is $100,000 and $30,000 for the second one

Now the second one would be brought forward i.e.

= $30,000 × 1.10

= $33,000

Now the inventory balance would be

= $100,000 + $33,000

= $133,000

Therefore this is the answer but the same is not provided in the given options

Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.