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 $810,000. The 2024 and 2025 ending inventory valued at year-end costs were $845,000 and $924,000, 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. Inventory Layers Converted to Base Year Cost Inventory Layers Converted to Cost Inventory DVL Cost Inventory at Date Year-End 01/01/2024 12/31/2024 12/31/2025 Cost Inventory Inventory Year-End Cost Layers at Base Year Inventory Layers at Base Year-End Cost Index Index Year Cost Cost Layers Converted to Cost Base Base 2024 Base 2024 2025 M

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 $810,000. The 2024 and 2025 ending inventory valued at year-end costs were $845,000 and $924,000, 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. Inventory Layers Converted to Base Year Cost Inventory Layers Converted to Cost Inventory DVL Cost Inventory at Date Year-End 01/01/2024 12/31/2024 12/31/2025 Cost Inventory Inventory Year-End Cost Layers at Base Year Inventory Layers at Base Year-End Cost Index Index Year Cost Cost Layers Converted to Cost Base Base 2024 Base 2024 2025 M

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Description: 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$810,000. The 2024 and 2025 ending inventory valued at year-end costs were $845,000 and $924,000, respectively. Theapprop

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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 method. The inventory value for its one inventory pool on this date was $490,000. Inventory data for 2024 through 2026 are as follows: Date 12/31/2024 12/31/2025 12/31/2026 Date Required: Calculate the company's ending inventory for 2024, 2025, and 2026. 01/01/2024 12/31/2024 12/31/2025 Ending Inventory at Year-End Costs $ 540,600 598,500 638,600 12/31/2026 Inventory Layers Converted to Base Year Cost Inventory at Year-End Cost Cost Index 1.06 1.14 1.24 Year-End Cost Index 1.00 1.06 1.14 1.24 = = = || = Inventory Layers at Base Year Cost Base Base 2024 Base 2024 2025 Base 2024 2025 2026 Inventory Layers Converted to Cost Inventory Layers at Base Year Cost Year-End Cost Index = II = = II Inventory Layers Converted to Cost Inventory DVL Cost $ $ $ $ 0 0 0 0
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On January 1, 2024, Select Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information: Beginning inventory Net purchases Net markups Net markdowns Net sales Retail price index, end of year Beginning inventory Plus: Net purchases Net markups Less: Net markdowns Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) Base layer cost-to-retail percentage 2024 layer cost-to-retail percentage Less: Net sales Cost $ 40,800 155,440 Estimate ending inventory using the dollar-value LIFO retail method. Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.) Estimated ending inventory at current year retail prices Estimated ending inventory at cost Estimated cost of goods sold $ Retail $ 68,000 270,000 6,000 8,000 250,000 1.02 Cost 40,800 $ 155,440 155,440 196,240 $ Retail 68,000 270,000 6,000 (8,000) 268,000 336,000 (250,000) 86,000…
Manji
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Gadubhai
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