Computing Ending Inventory using Dollar-Value LIFOOn January 1, 2020, Benn Company changed from FIFO to LIFO for income tax and external reporting purposes. At that date, the beginning FIFO inventory (the base inventory for LIFO purposes) was $392,000. The following information is available from Benn’s records for the years 2020 through 2023. YearEnding Inventory on a FIFO BasisPrice Index2020$462,0001.12021487,2001.22022564,2001.32023560,0001.2 RequiredCompute the ending inventory on a dollar-value LIFO basis for each year, 2020 through 2023.Note: Do not round until your final answer. Round your final answer to the nearest whole dollar Dollar-value LIFO ending inventory, 2020Answer Dollar-value LIFO ending inventory, 2021Answer Dollar-value LIFO ending inventory, 2022Answer Dollar-value LIFO ending inventory, 2023Answer

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Description: Computing Ending Inventory using Dollar-Value LIFOOn January 1, 2020, Benn Company changed from FIFO to LIFO for income tax and external reporting purposes. At that date, the beginning FIFO inventory (the base inventory for LIFO purposes) was $392,00

Dollar value LIFO method: This method is different model for the last-in first layering model. Under…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Computing Ending Inventory using Dollar-Value LIFO

On January 1, 2020, Benn Company changed from FIFO to LIFO for income tax and external reporting purposes. At that date, the beginning FIFO inventory (the base inventory for LIFO purposes) was $392,000. The following information is available from Benn’s records for the years 2020 through 2023.

Year	Ending Inventory on a FIFO Basis	Price Index
2020	$462,000	1.1
2021	487,200	1.2
2022	564,200	1.3
2023	560,000	1.2

Required

Compute the ending inventory on a dollar-value LIFO basis for each year, 2020 through 2023.

Note: Do not round until your final answer. Round your final answer to the nearest whole dollar

Dollar-value LIFO ending inventory, 2020	Answer
Dollar-value LIFO ending inventory, 2021	Answer
Dollar-value LIFO ending inventory, 2022	Answer
Dollar-value LIFO ending inventory, 2023	Answer

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