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A company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1, 2024, with an inventory of $156,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended December 31 2024 2025 2026 2027 Date Required: Calculate inventory amounts at the end of each year. Note: Round intermediate calculations and final answers to the nearest whole dollars. 01/01/2024 12/31/2024 12/31/2025 Ending Inventory at Cost Index (Relative to Year-End Costs Base Year) $ 242,000 316,800 297,180 299,000 12/31/2026 12/31/2027 Inventory Layers Converted to Base Year Cost Inventory at Year- End Cost Base $ 156,000 $ Base $ 156,000 S 2024 $ 64,000 $ Base $ 156,000 S 2024 $ 64,000 S 2025 $ 44,000 $ Base $ 2024 $ 2025 $ 2026 S Base $ 2024 $ 2025 S 44,000 $ 2026 $ (10,000) S 2027 $ 156,000 $ 64,000 $ 44,000 $ (10,000) $ 156,000 $ 64,000 S 6,000 S *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect: no points deducted. Inventory Layers at Base Year Cost $ 156,000 $ 242,000 $ 156,000 $ 220,000 $ 316,800 $ 264,000 1.10 1.20 1.17 1.15 $ 297,180 $ 254,000 $ 299,000 $ 260,000 Inventory Layers Converted to Cost Inventory Layers at Base Year Cost Inventory Layers Converted to Cost 156,000 $ 156,000 156,000 70,400 $ 226,400 156,000 70,400 52,800 $ 279,200 156,000 Inventory DVL Cost 70,400 52,800 X (11,700) s 267,500 156,000 70,400✔ 52,800 X (11,700) 6,900 $ 274,400

A company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1, 2024, with an inventory of $156,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended December 31 2024 2025 2026 2027 Date Required: Calculate inventory amounts at the end of each year. Note: Round intermediate calculations and final answers to the nearest whole dollars. 01/01/2024 12/31/2024 12/31/2025 Ending Inventory at Cost Index (Relative to Year-End Costs Base Year) $ 242,000 316,800 297,180 299,000 12/31/2026 12/31/2027 Inventory Layers Converted to Base Year Cost Inventory at Year- End Cost Base $ 156,000 $ Base $ 156,000 S 2024 $ 64,000 $ Base $ 156,000 S 2024 $ 64,000 S 2025 $ 44,000 $ Base $ 2024 $ 2025 $ 2026 S Base $ 2024 $ 2025 S 44,000 $ 2026 $ (10,000) S 2027 $ 156,000 $ 64,000 $ 44,000 $ (10,000) $ 156,000 $ 64,000 S 6,000 S *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect: no points deducted. Inventory Layers at Base Year Cost $ 156,000 $ 242,000 $ 156,000 $ 220,000 $ 316,800 $ 264,000 1.10 1.20 1.17 1.15 $ 297,180 $ 254,000 $ 299,000 $ 260,000 Inventory Layers Converted to Cost Inventory Layers at Base Year Cost Inventory Layers Converted to Cost 156,000 $ 156,000 156,000 70,400 $ 226,400 156,000 70,400 52,800 $ 279,200 156,000 Inventory DVL Cost 70,400 52,800 X (11,700) s 267,500 156,000 70,400✔ 52,800 X (11,700) 6,900 $ 274,400

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1, 2024, with an inventory of $156,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended December 31 2024 2025 2026 2027 Date Required: Calculate inventory amounts at the end of each year. Note: Round intermediate calculations and final answers to the nearest whole dollars. 01/01/2024 12/31/2024 12/31/2025 Ending Inventory at Cost Index (Relative to Year-End Costs Base Year) $ 242,000 316,800 297,180 299,000 12/31/2026 12/31/2027 Inventory Layers Converted to Base Year Cost Inventory at Year- End Cost $ $ 156,000 $ 156,000 Base Base 156,000 156,000 $ $ 156,000 2024 $ 64,000 $ 70,400 $ 226,400 156,000 $ 156,000 Base $ 2024 64,000 $ 70,400 2025 $ 44,000 $ 52,800 $ 279,200 Base $ 156,000 $ 156,000 70,400 64,000 $ 52,800 X (11,700) $ 267,500 156,000 2024 $ 2025 $ 2026 $ Base $ 2024 $ 2025 $ 2026 $ 2027 $ 44,000 $ (10,000) $ 156,000 $ 64,000 $ 44,000 $ (10,000) $ (11,700) 70,400 52,800 X 6,000 $ 6,900 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. $ 156,000 $ 242,000 $ 316,800 Inventory Layers at Base Year Cost $ 156,000 $ 220,000 $ 299,000 $ 264,000 $ 297,180 $ 254,000 1.10 1.20 1.17 1.15 $ 260,000 Inventory Layers Converted to Cost Inventory Inventory Layers at Base Year Cost Layers Converted to Cost Inventory DVL Cost $ 274,400
Transcribed Image Text:A company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1, 2024, with an inventory of $156,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended December 31 2024 2025 2026 2027 Date Required: Calculate inventory amounts at the end of each year. Note: Round intermediate calculations and final answers to the nearest whole dollars. 01/01/2024 12/31/2024 12/31/2025 Ending Inventory at Cost Index (Relative to Year-End Costs Base Year) $ 242,000 316,800 297,180 299,000 12/31/2026 12/31/2027 Inventory Layers Converted to Base Year Cost Inventory at Year- End Cost $ $ 156,000 $ 156,000 Base Base 156,000 156,000 $ $ 156,000 2024 $ 64,000 $ 70,400 $ 226,400 156,000 $ 156,000 Base $ 2024 64,000 $ 70,400 2025 $ 44,000 $ 52,800 $ 279,200 Base $ 156,000 $ 156,000 70,400 64,000 $ 52,800 X (11,700) $ 267,500 156,000 2024 $ 2025 $ 2026 $ Base $ 2024 $ 2025 $ 2026 $ 2027 $ 44,000 $ (10,000) $ 156,000 $ 64,000 $ 44,000 $ (10,000) $ (11,700) 70,400 52,800 X 6,000 $ 6,900 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. $ 156,000 $ 242,000 $ 316,800 Inventory Layers at Base Year Cost $ 156,000 $ 220,000 $ 299,000 $ 264,000 $ 297,180 $ 254,000 1.10 1.20 1.17 1.15 $ 260,000 Inventory Layers Converted to Cost Inventory Inventory Layers at Base Year Cost Layers Converted to Cost Inventory DVL Cost $ 274,400
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