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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 $219,000. 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 Ending Inventory at Cost Index (Relative to Year-End Costs Base Year) $ 333,500 426,250 403,820 395,300 1.15 1.25 1.22 1.18 Required: Calculate inventory amounts at the end of each year.

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 $219,000. 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 Ending Inventory at Cost Index (Relative to Year-End Costs Base Year) $ 333,500 426,250 403,820 395,300 1.15 1.25 1.22 1.18 Required: Calculate inventory amounts at the end of each year.

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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PLEASE FILL IN THE CIRCLED BOXES. THE REST OF THE VALUES IN OTHER BOXES ARE CORRECT. Note:- • Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. • Answer completely. • You will get up vote for sure.
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 $219,000. 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 12/31/2026 Base Year) Ending Inventory at Cost Index (Relative to Year-End Costs $ 333,500 426,250 403,820 395,300 12/31/2027 Inventory Layers Converted to Base Year Cost Inventory at Year-End Cost Inventory Layers at Base Year Cost $ 219,000 $ $ 333,500 $ $ 426,250 $ $ 403,820 $ $ 395,300 $ 219,000 290,000 Base $ Base $ 2024 $ 341,000 Base $ 2024 $ 2025 $ Base $ 2024 $ 2025 $ 2026 Base $ 2024 $ 2025 $ 2026 2027 331,000 1.15 1.25 1.22 1.18 335,000 Inventory Layers Converted to Cost Inventory Layers Converted to Cost Inventory Layers at Base Year Cost 219,000 $ 219,000 $ 71,000 $ 219,000 $ 71,000 $ 51,000 $ 219,000 $ 71,000 $ 41,000 $ 219,000 $ 71,000 $ 41,000 $ Inventory DVL Cost 219,000 $ 219,000 81,650 $ 300,650 219,000 81,650 63,750 $ 364,400 219,000 81,650 51,250 219,000 81,650 51,250 219,000 $ 351,900 $ 351,900
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 $219,000. 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 12/31/2026 Base Year) Ending Inventory at Cost Index (Relative to Year-End Costs $ 333,500 426,250 403,820 395,300 12/31/2027 Inventory Layers Converted to Base Year Cost Inventory at Year-End Cost Inventory Layers at Base Year Cost $ 219,000 $ $ 333,500 $ $ 426,250 $ $ 403,820 $ $ 395,300 $ 219,000 290,000 Base $ Base $ 2024 $ 341,000 Base $ 2024 $ 2025 $ Base $ 2024 $ 2025 $ 2026 Base $ 2024 $ 2025 $ 2026 2027 331,000 1.15 1.25 1.22 1.18 335,000 Inventory Layers Converted to Cost Inventory Layers Converted to Cost Inventory Layers at Base Year Cost 219,000 $ 219,000 $ 71,000 $ 219,000 $ 71,000 $ 51,000 $ 219,000 $ 71,000 $ 41,000 $ 219,000 $ 71,000 $ 41,000 $ Inventory DVL Cost 219,000 $ 219,000 81,650 $ 300,650 219,000 81,650 63,750 $ 364,400 219,000 81,650 51,250 219,000 81,650 51,250 219,000 $ 351,900 $ 351,900
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