Silver Quick Adopted LIFO in January 1, 2015, When the Inventory

question 80

Essay

Silver Quick adopted LIFO in January 1, 2015, when the inventory had a FIFO cost of $180,000 $10 per unit). At the end of 2015, inventory consisted of 18,750 units at $12 per unit, and the ending inventory for 2016 consisted of 20,000 units at $15 per unit.
Required:
a. Calculate the cost index to be used for 2015 and 2016 using the link-chain method.
b. Compute the ending inventory for 2015 and 2016 using dollar-value LIFO.

---

Definitions:

Density

In a general context, it refers to the measure of mass per unit volume; in marketing, it may relate to the saturation of advertisements or products in a market area.

Geographical Area

A specific part of the earth's surface defined by natural or artificial boundaries.

Manufacturer-Sponsored Wholesale Franchise System

A form of franchising where the manufacturer licenses distributors to sell its products to retailers, maintaining control over branding and marketing.

Soft Drink Industry

Refers to the sector involving the production, marketing, and sale of non-alcoholic beverages, such as soda, packaged water, and juices.