On January 1, 2024, a Company adopted the dollar-value LIFO method for its one inventory pool. The pool's value on this date was $780,000. The 2024 and 2025 ending inventory valued at year-end costs were $819,000 and $901,000, respectively. The appropriate cost indexes are 1.04 for 2024 and 1.06 for 2025. Required: Complete the below table to calculate the inventory value at the end of 2024 and 2025 using the dollar-value LIFO method. Note: Round "Year end cost index" to 2 decimal places. Round other final answer values to the nearest whole dollars.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Exercise 8-26 (Algo) Dollar-value LIFO [LO8-8]
On January 1, 2024, a Company adopted the dollar-value LIFO method for its one inventory pool. The pool's value on this date was
$780,000. The 2024 and 2025 ending inventory valued at year-end costs were $819,000 and $901,000, respectively. The appropriate
cost indexes are 1.04 for 2024 and 1.06 for 2025.
Required:
Complete the below table to calculate the inventory value at the end of 2024 and 2025 using the dollar-value LIFO method.
Note: Round "Year end cost index" to 2 decimal places. Round other final answer values to the nearest whole dollars.
Inventory Layers Converted to Base Year Cost
Inventory Layers Converted to Cost
Inventory
DVL Cost
Inventory at
Date
Year-End
Cost
Year-End
Cost
Index
Inventory
Layers at
Base Year
Inventory
Layers at Base
Inventory
Year-End
Cost Index
Year Cost
Cost
Layers
Converted to
Cost
01/01/2024
12/31/2024
Base
$
0
=
Base
2024
0
Base
12/31/2025
2024
2025
$
0
Transcribed Image Text:Exercise 8-26 (Algo) Dollar-value LIFO [LO8-8] On January 1, 2024, a Company adopted the dollar-value LIFO method for its one inventory pool. The pool's value on this date was $780,000. The 2024 and 2025 ending inventory valued at year-end costs were $819,000 and $901,000, respectively. The appropriate cost indexes are 1.04 for 2024 and 1.06 for 2025. Required: Complete the below table to calculate the inventory value at the end of 2024 and 2025 using the dollar-value LIFO method. Note: Round "Year end cost index" to 2 decimal places. Round other final answer values to the nearest whole dollars. Inventory Layers Converted to Base Year Cost Inventory Layers Converted to Cost Inventory DVL Cost Inventory at Date Year-End Cost Year-End Cost Index Inventory Layers at Base Year Inventory Layers at Base Inventory Year-End Cost Index Year Cost Cost Layers Converted to Cost 01/01/2024 12/31/2024 Base $ 0 = Base 2024 0 Base 12/31/2025 2024 2025 $ 0
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