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 $150,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: P8-14 Dollar-value LIFO • LO8-8 Year Ended Ending Inventory Cost Index December 31 at Year-End Costs (Relative to Base Year) 2021 $200,000 1.08 2022 245,700 1.17 2023 235,980 1.14 2024 228,800 1.10 Required: Calculate inventory amounts at the end of each year.

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 $150,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: P8-14 Dollar-value LIFO • LO8-8 Year Ended Ending Inventory Cost Index December 31 at Year-End Costs (Relative to Base Year) 2021 $200,000 1.08 2022 245,700 1.17 2023 235,980 1.14 2024 228,800 1.10 Required: Calculate inventory amounts at the end of each year.

Name: Kingston Company uses the dollar-value LIFO method of computing inven
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Description: Kingston Company uses the dollar-value LIFO method of computing inventory. An external price index is usedto convert ending inventory to base year. The company began operations on January 1, 2021, with an inventoryof $150,000. Year-end inventories a

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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