Quicksilver Adopted LIFO in January 1, 2010, When the Inventory

question 43

Essay

Quicksilver adopted LIFO in January 1, 2010, when the inventory had a FIFO cost of $180, 000 ($10 per unit).At the end of 2010, inventory consisted of 18, 750 units at $12 per unit, and the ending inventory for 2011 consisted of 20, 000 units at $15 per unit.
Required:
a. Calculate the cost index to be used for 2010 and 2011 using the link-chain method.
b. Compute the endinginvent ory for 2010 and 2011 using dollar-value LIFO.

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Definitions:

Chemical Bond

The force of attraction between atoms or ions that enables the formation of chemical compounds.

Atomic Number

The number of protons in the nucleus of an atom, determining the chemical properties of an element and its place in the periodic table.

Helium

A chemical element with symbol He and atomic number 2, known for being a lightweight, inert gas widely used in balloons and as a coolant.

Neon

A chemical element with the symbol Ne and atomic number 10, it is a colorless, odorless, inert monatomic gas under standard conditions, with about two-thirds the density of air and is used in fluorescent lamps and signs.