On January 1, 2024, a company adopted the dollar-value LIFO inventory method. The inventory value for its one inventory pool on thi date was $260,000. 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 2024 2025 2026 2027 Inventory Year- Cost Index (Relative End Costs to Base Year) $ 340,000 350,000 400,000 430,000 1.02 1.06 1.07 1.10 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 thi date was $260,000. 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 2024 2025 2026 2027 Inventory Year- Cost Index (Relative End Costs to Base Year) $ 340,000 350,000 400,000 430,000 1.02 1.06 1.07 1.10 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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Transcribed Image Text: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 $260,000. 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
2024
2025
2026
2027
Date
01/01/2024
12/31/2024
12/31/2025
Required:
Calculate inventory amounts at the end of each year.
Note: Round intermediate calculations and final answers to the nearest whole dollars.
12/31/2026
Inventory Year- Cost Index (Relative
End Costs
to Base Year)
12/31/2027
$ 340,000
350,000
400,000
430,000
Inventory Layers Converted to
Base Year Cost
Inventory at
Year-End Cost
1.02
1.06
Inventory
Layers at
Base Year
Cost
1.07
1.10
Inventory Layers Converted to 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
Inventory DVL
Cost
$
$
$
$
$
0
0
0
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