At the beginning of 2021, a company adopts the dollar-value LIFO inventory method for its one inventory pool. The pool’s value on that date was $1,400,000. The 2021 ending inventory valued at year-end costs was $1,664,000 and the year-end cost index was 1.04. Calculate the inventory value at the end of 2021 using the dollar-value LIFO method.
At the beginning of 2021, a company adopts the dollar-value LIFO inventory method for its one inventory pool. The pool’s value on that date was $1,400,000. The 2021 ending inventory valued at year-end costs was $1,664,000 and the year-end cost index was 1.04. Calculate the inventory value at the end of 2021 using the dollar-value LIFO method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the beginning of 2021, a company adopts the dollar-value LIFO inventory method for its one inventory pool. The pool’s value on that date was $1,400,000. The 2021 ending inventory valued at year-end costs was $1,664,000 and the year-end cost index was 1.04.
Calculate the inventory value at the end of 2021 using the dollar-value LIFO method.
Transcribed Image Text:Inventory Layers converted to Base Year Cost
Inventory Layers converted to Cost
Inventory DVL
Cost
Inventory
Layers
Converted to
Year-end
Inventory Layers
at Base Year
Cost
Year-end
Inventory at year-
end cost
Inventory
Layers at Base
Year Cost
Date
cost
cost
index
index
Cost
01/01/2021
Base
12/31/2021
Base
2021
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