SlideShare a Scribd company logo
value if lifo for its inverntory. the inventory on12/31/2020 was $70,000 when the price index
was 100 Tim had physical count of inventory on hand of $10,000 on 12/31/2021. Two other
situations concerned Tim: (1) Goods, FOB Destination, were shipped by Tim to Jenna costing
$5,000 and sold for $7,000. The goods were shipped on 12/29/2021 and Jenna received them on
1/3/2022. (2) Goods, FOB Shipping Point, were shipped by Tim to Chun costing $2,000 and sold
for $3,000. The goods were shipped on 12/27/2021 and Chun received them 1/5/2022. What was
Tim's inventory at the end of 12/31/2021 ?
Vandalay Industries is an import-export company that uses -valueLIFO foritsinventory.
TheInventoryon 12/31/2020 was $70,000w -value LIFO. On 12/31/2021, Vandalay had
inventory of $85,600 (current prices) when the price index was 107%. On 12/31/2022, Vandalay
had inventory of $86,250 (current prices) when the price index was 115%. What would Vandalay
report as the $-value LIFO in its financial statements?

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