On January 1, 2024, a company adopted the dollar-value LIFO inventory method. The inventory value for its one inventory pool on this date was $295,000. An internally generated cost index is used to convert ending inventory to base year. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended December 31 Inventory Year-End Costs Cost Index (Relative to Base Year) 2024 $ 382,130 1.03 2025 393,760 1.07 2026 447,120 1.08 2027 479,520 1.11 Required: Calculate inventory amounts at the end of each year. Note: Round intermediate calculations and final answers to the nearest whole dollars.
On January 1, 2024, a company adopted the dollar-value LIFO inventory method. The inventory value for its one inventory pool on this date was $295,000. An internally generated cost index is used to convert ending inventory to base year. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended December 31 Inventory Year-End Costs Cost Index (Relative to Base Year) 2024 $ 382,130 1.03 2025 393,760 1.07 2026 447,120 1.08 2027 479,520 1.11 Required: Calculate inventory amounts at the end of each year. Note: Round intermediate calculations and final answers to the nearest whole dollars.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2024, a company adopted the dollar-value LIFO inventory method. The inventory value for its one inventory pool on this date was $295,000. An internally generated cost index is used to convert ending inventory to base year. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows:
| Year Ended December 31 | Inventory Year-End Costs | Cost Index (Relative to Base Year) |
|---|---|---|
| 2024 | $ 382,130 | 1.03 |
| 2025 | 393,760 | 1.07 |
| 2026 | 447,120 | 1.08 |
| 2027 | 479,520 | 1.11 |
Required:
Calculate inventory amounts at the end of each year.
Note: Round intermediate calculations and final answers to the nearest whole dollars.
Transcribed Image Text:Date
01/01/2024
12/31/2024
12/31/2025
12/31/2026
12/31/2027
Inventory Layers Converted to
Base Year Cost
Inventory at
Year-End
Cost
$ 295,000
$ 382,130
Inventory
Layers at Base
Year Cost
Inventory Layers Converted to Cost Inventory DVL
Cost
Base
Base
2024
Base
2024
2025
Base
2024
2025
2026
Base
2024
2025
2026
2027
Inventory
Layers at Base
Year Cost
Inventory
Layers
Converted to
Cost
$
$
14
$
$
69
0
0
0
0
0
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