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.

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Definitions:

Bilingual Province

A region within a country that officially recognizes and supports the use of two languages for government, education, and public communication.

New Brunswick

A province in eastern Canada known for its maritime landscapes, Acadian culture, and as one of the country's three Maritime provinces.

Common Law

A legal system based on precedents and judicial decisions rather than codified statutes.

Damages

Financial compensation awarded by a court to indemnify losses suffered by a plaintiff as a result of another's actions.