On January 1, 2021, the National Furniture Company adopted the dollar-value LIFO method of computing inventory. An internal cost index is used to convert ending inventory to base year. Inventory on January 1 was $200,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended December 31 Inventory at Year-end Costs Cost Index (Relative to Base Year) 2021 $ 259,200 1.08 2022 296,800 1.12 2023 299,000 1.15 Required: Compute inventory amounts at the end of each year using the dollar-value LIFO method. 12/31/2021 12/31/2022 12/31/2023
On January 1, 2021, the National Furniture Company adopted the dollar-value LIFO method of computing inventory. An internal cost index is used to convert ending inventory to base year. Inventory on January 1 was $200,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended December 31 Inventory at Year-end Costs Cost Index (Relative to Base Year) 2021 $ 259,200 1.08 2022 296,800 1.12 2023 299,000 1.15 Required: Compute inventory amounts at the end of each year using the dollar-value LIFO method. 12/31/2021 12/31/2022 12/31/2023
Chapter1: Financial Statements And Business Decisions
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On January 1, 2021, the National Furniture Company adopted the dollar-value LIFO method of computing inventory. An internal cost index is used to convert ending inventory to base year. Inventory on January 1 was $200,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows:
| Year Ended December 31 |
Inventory at Year-end Costs |
Cost Index (Relative to Base Year) |
||||
| 2021 | $ | 259,200 | 1.08 | |||
| 2022 | 296,800 | 1.12 | ||||
| 2023 | 299,000 | 1.15 | ||||
Required:
Compute inventory amounts at the end of each year using the dollar-value LIFO method.
12/31/2021
12/31/2022
12/31/2023
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