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 $150,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended Ending Inventory at Year-Cost Index (Relative to December 31 Base Year) 2024 2025 2026 2027 End Costs $ 200,000 245,700 235,980 228,800 1.08 1.17 1.14 1.10 Required: Calculate inventory amounts at the end of each year. Note: Round intermediate calculations and final answers to the nearest whole dollars.
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 $150,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended Ending Inventory at Year-Cost Index (Relative to December 31 Base Year) 2024 2025 2026 2027 End Costs $ 200,000 245,700 235,980 228,800 1.08 1.17 1.14 1.10 Required: Calculate inventory amounts at the end of each year. Note: Round intermediate calculations and final answers to the nearest whole dollars.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $150,000. Year-end inventories at year-end costs
and cost indexes for its one inventory pool were as follows:
Year Ended Ending Inventory at Year-Cost Index (Relative to
December 31
Base Year)
2024
2025
2026
2027
Date
01/01/2024
12/31/2024
Required:
Calculate inventory amounts at the end of each year.
Note: Round intermediate calculations and final answers to the nearest whole dollars.
12/31/2025
12/31/2026
12/31/2027
End Costs
$ 200,000
245,700
Inventory
at Year-
End Cost
235,980
228,800
Inventory Layers
Converted to Base Year
Cost
$ 150,000
$200,000
Inventory
Layers at
Base Year
Cost
$
$ 245,700✔✔✔ $
$ 235,980 $
$ 228,000 $
1 x
1 x
Base
Base
Inventory Layers Converted to Cost
Inventory
Layers at
Base Year
Cost
Inventory
Layers
Converted to
Cost
2024
1 X Base
2024
2025
1.08
1.17
1.14
1.10
1 x Base
2024
2025
2026
1 x Base
2024
2025
2026
2027
Answer is not complete.
$
150,000 $
Inventory DVL
Cost
× $
$
$
$
$
1
0
0
0
0
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