Carswell Electronics adopted the dollar-value LIFO method on January 1, 2016, when the inventory value of its one inventory pool was $720,000. The company decided to use an external index, the Consumer Price Index (CPI), to adjust for changes in the cost level. On January 1, 2016, the CPI was 240. On December 31, 2016, inventory valued at year-end cost was $880,000 and the CPI was 264. Required: Calculate the inventory value at the end of 2016 using the dollar-value LIFO method.
Carswell Electronics adopted the dollar-value LIFO method on January 1, 2016, when the inventory value of its one inventory pool was $720,000. The company decided to use an external index, the Consumer Price Index (CPI), to adjust for changes in the cost level. On January 1, 2016, the CPI was 240. On December 31, 2016, inventory valued at year-end cost was $880,000 and the CPI was 264. Required: Calculate the inventory value at the end of 2016 using the dollar-value LIFO method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Carswell Electronics adopted the dollar-value LIFO method on January 1, 2016, when the inventory value of its one inventory pool was $720,000. The company decided to use an external index, the Consumer Price Index (CPI), to adjust for changes in the cost level. On January 1, 2016, the CPI was 240. On December 31, 2016, inventory valued at year-end cost was $880,000 and the CPI was 264. Required: Calculate the inventory value at the end of 2016 using the dollar-value LIFO method.
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