On January 1, 2021, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $100,200. The ending inventory, valued at year-end costs, and the relative cost index for each of the next three years is below: Year-end Ending Inventory at year-end costs Cost Index 2021 $ 126,630 1.05 2022 143,880 1.10 2023 154,440 1.20 In determining the inventory balance for Badger to report in its 12/31/2022 balance sheet (Multiple Choice): A. An additional layer of $23,220 is added to the 12/31/2021 balance. B. An additional layer of $22,220 is added to the 12/31/2021 balance. C. An additional layer of $11,220 is added to the 12/31/2021 balance. D. None of the abov
On January 1, 2021, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $100,200. The ending inventory, valued at year-end costs, and the relative cost index for each of the next three years is below: Year-end Ending Inventory at year-end costs Cost Index 2021 $ 126,630 1.05 2022 143,880 1.10 2023 154,440 1.20 In determining the inventory balance for Badger to report in its 12/31/2022 balance sheet (Multiple Choice): A. An additional layer of $23,220 is added to the 12/31/2021 balance. B. An additional layer of $22,220 is added to the 12/31/2021 balance. C. An additional layer of $11,220 is added to the 12/31/2021 balance. D. None of the abov
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On January 1, 2021, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $100,200. The ending inventory, valued at year-end costs, and the relative cost index for each of the next three years is below:
| Year-end | Ending Inventory at year-end costs | Cost Index | |||||
| 2021 | $ | 126,630 | 1.05 | ||||
| 2022 | 143,880 | 1.10 | |||||
| 2023 | 154,440 | 1.20 |
In determining the inventory balance for Badger to report in its 12/31/2022 balance sheet (Multiple Choice):
A. An additional layer of $23,220 is added to the 12/31/2021 balance.
B. An additional layer of $22,220 is added to the 12/31/2021 balance.
C. An additional layer of $11,220 is added to the 12/31/2021 balance.
D. None of the above
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