Please help with answers asap **Text Transcription and Explanation****Overview:**Kingston 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, 2021, with an inventory of $275,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool are as follows:| Year Ended December 31 | Ending Inventory at Year-End Costs | Cost Index (Relative to Base Year) ||------------------------|-----------------------------------|-----------------------------------|| 2021 | $378,680 | 1.08 || 2022 | $488,250 | 1.15 || 2023 | $456,550 | 1.18 || 2024 | $440,680 | 1.18 |**Required:**Calculate inventory amounts at the end of each year. (Round intermediate calculations and final answers to the nearest whole dollar.)**Details in Table Format:**The image includes a detailed table that guides the calculation of inventory values using the LIFO method. The table is divided into two main sections: 1. **Inventory Layers Converted to Base Year Cost** 2. **Inventory Layers Converted to Cost**Each section provides columns for the following:- **Date**: The specific date for inventory evaluation.- **Inventory at Year-End Cost**: The documented value of the inventory for that year.- **Year-End Cost Index**: The cost index relevant to the corresponding year.- **Inventory Layers at Base Year Cost**: Conversion from the year-end cost to base year cost.**Process Description:**- Calculations are performed for each year's closing inventory to adjust it back to the base year's dollar value using the LIFO method.- The table helps in understanding how the year's inventories, layered with previous years' inventories, can affect base year conversion and subsequent evaluations.**Purpose:**The purpose of this exercise is to ensure accurate financial reporting by properly accounting for inflation and cost changes using the dollar-value LIFO method. This methodology adjusts inventory costs according to external price index fluctuations, providing realistic valuations over multiple years.

LIFO stands for Last in, first out, it is the method which is used for the inventory accounting that…

Kingston 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, 2021, with an Inventory of $275,000. Year-end inventories at year-end costs and cost Indexes for Its one Inventory pool were as follows: Year Ended Decenber 31 2021 2022 2023 2024 Ending Inventory at Year-Ind Costs $378,000 480, 260 456, 550 448, 000 Cost Index (Relative to Base Year) 1.88 1.18 1.15 1.10 Required Calculate Inventory amounts at the end of each year. (Round intermediate calculations and final answers to the nearest whole dollars)

Kingston 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, 2021, with an Inventory of $275,000. Year-end inventories at year-end costs and cost Indexes for Its one Inventory pool were as follows: Year Ended Decenber 31 2021 2022 2023 2024 Ending Inventory at Year-Ind Costs $378,000 480, 260 456, 550 448, 000 Cost Index (Relative to Base Year) 1.88 1.18 1.15 1.10 Required Calculate Inventory amounts at the end of each year. (Round intermediate calculations and final answers to the nearest whole dollars)

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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