On January 1, 2020, Temple Company adopted the dollar-value LIFO method for its one inventory pool. The pool's value on this date was $600 million. The 2020 and 2021 ending inventory valued at year-end costs were $702 million and $840 million, respectively. The appropriate cost indexes are 1.08 for 2020 and 1.20 for 2021. Required: Show all calculation for the inventory balance that Temple would report on its year-end balance sheets for 1, 2020 and 2. 2021, using the dollar-value LIFO method. ANSWER: 1. December 31, 2020, DVL inventory $ 2. December 31, 2021, DVL inventory $
On January 1, 2020, Temple Company adopted the dollar-value LIFO method for its one inventory pool. The pool's value on this date was $600 million. The 2020 and 2021 ending inventory valued at year-end costs were $702 million and $840 million, respectively. The appropriate cost indexes are 1.08 for 2020 and 1.20 for 2021. Required: Show all calculation for the inventory balance that Temple would report on its year-end balance sheets for 1, 2020 and 2. 2021, using the dollar-value LIFO method. ANSWER: 1. December 31, 2020, DVL inventory $ 2. December 31, 2021, DVL inventory $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On January 1, 2020, Temple Company adopted the dollar-value LIFO method for its one inventory pool. The pool's value on this date was $600 million. The 2020 and 2021 ending inventory valued at year-end costs were $702 million and $840 million, respectively. The appropriate cost indexes are 1.08 for 2020 and 1.20 for 2021.
Required:
Show all calculation for the inventory balance that Temple would report on its year-end
1, 2020 and
2. 2021, using the dollar-value LIFO method.
ANSWER:
1.
December 31, 2020, DVL inventory $
2.
December 31, 2021, DVL inventory $
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