Computing Ending Inventory under Dollar-Value LIFO Wheels Inc. accounts for inventory using the dollar-value LIFO method. The following information is available for Year 1 through Year 3 (listed chronologically). Year Ending Inventory at FIFO Price Index Year 1 $5,000 1.00 Year 2 8,000 1.10 Year 3 10,000 1.13 Compute ending inventory under the dollar-value LIFO method for Year 1, Year 2, and Year 3.
Computing Ending Inventory under Dollar-Value LIFO Wheels Inc. accounts for inventory using the dollar-value LIFO method. The following information is available for Year 1 through Year 3 (listed chronologically). Year Ending Inventory at FIFO Price Index Year 1 $5,000 1.00 Year 2 8,000 1.10 Year 3 10,000 1.13 Compute ending inventory under the dollar-value LIFO method for Year 1, Year 2, and Year 3.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Computing Ending Inventory under Dollar-Value LIFO
Wheels Inc. accounts for inventory using the dollar-value LIFO method. The following information is available for Year 1 through Year 3 (listed chronologically).
Year Ending Inventory at FIFO Price Index
Year 1
$5,000
1.00
8,000
1.10
10,000
1.13
Year 2
Year 3
Compute ending inventory under the dollar-value LIFO method for Year 1, Year 2, and Year 3.
• Note: Round your answers to the nearest whole dollar.
Date
Year 1
Year 2
Year 3
Ending
Inventory
(End of
year
prices)
$5,000
0
0
Price
Index
1.00
0
0
Ending
Inventory Inventory Price Ending Inventory
(Base year
prices)
$5,000
0
0
Layers Index (Dollar Value LIFO)
$5,000
1.00 $
5,000
1.00 $
0
1.10
0
0
0
0
0
0
0
0
0
0
0
$
1.00 $
1.10
1.13
$
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