Compute the LIFO cost of the ending inventory

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Reference no: EM132882846

Problem - Dollar-Value LIFO and Inventory Pools Webster Company adopted dollar-value LIFO on January 1, 2019. Webster produces three products: X, Y, and Z. Webster's beginning inventory consisted of the following:

Type

Quantity

Cost per Unit

Total Cost

X

30,000

$4.25

$127,500

Y

10,000

3.50

35,000

Z

25,000

2.00

50,000


65,000


$212,500

During 2019, Webster had the following purchases and sales:

Type

Quantity Purchased

Cost Per Unit

Quantity Sold

Selling Price per Unit

X

110,000

$4.75

90,000

$10.00

Y

100,000

3.75

85,000

7.50

Z

75,000

2.10

70,000

5.00


285,000


245,000


Required -

1. Compute the LIFO cost of the ending inventory assuming Webster uses a single inventory pool. Round cost index to 4 decimal places.

2. Compute the LIFO cost of the ending inventory assuming Webster uses three inventory pools. Round cost indexes to 4 decimal places.

Reference no: EM132882846

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