Michael Jones Company Has Adopted the Dollar-Value LIFO Method in 2018

question 51

Multiple Choice

Michael Jones Company has adopted the dollar-value LIFO method in 2018. At December 31, 2018, the ending inventory at dollar-value LIFO is $103,000, with a price index of 1.00. At December 31, 2019, the ending inventory using FIFO is $125,000. The price index is 1.3 in 2019. Round all dollar amounts to the nearest dollar. What is the ending inventory using dollar-value LIFO at December 31, 2019?

• A) $103,000
• B) $199,154
• C) $96,154
• D) $125,000

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Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and profitability over a specific accounting period.

Debit Column

The column in a ledger or financial statement where entries of debit are recorded.

Balance Sheet

Rephrased: The balance sheet is a key financial statement that presents the assets, liabilities, and equity of a company, offering insight into its financial health at a particular moment.

Credits

Entries in accounting that increase liabilities or equity accounts, or decrease asset or expense accounts, reflecting transactions.