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 $830,000. The 2024 and 2025 ending inventory valued at year-end costs were $871,000 and $945,000, respectively. The appropriate cost indexes are 1.04 for 2024 and 1.05 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.
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 $830,000. The 2024 and 2025 ending inventory valued at year-end costs were $871,000 and $945,000, respectively. The appropriate cost indexes are 1.04 for 2024 and 1.05 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.
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 method for its one inventory pool. The pool's value on this date was
$830,000. The 2024 and 2025 ending inventory valued at year-end costs were $871,000 and $945,000, respectively. The appropriate
cost indexes are 1.04 for 2024 and 1.05 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.
Date
01/01/2024
12/31/2024
12/31/2025
Inventory Layers Converted to Base Year Cost
Inventory
Layers at
Base Year
Cost
Inventory at
Year-End
Cost
Year-End
Cost
Index
IIII
=
Base
Base
2024
Base
2024
2025
Inventory Layers Converted to Cost
Inventory
Layers at Base
Year Cost
Year-End
Cost Index
=
=
=
=
=
Inventory
Layers
Converted to
Cost
$
$
$
Inventory
DVL Cost
0
0
0
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