Homework Help is Here – Start Your Trial Now!
Business
Accounting
On January 1, Year 1, a company adopted the dollar-value LIFO method for its one inventory pool. The pool's value on this date was $670,000. The Year 1 and Year 2 ending inventory valued at year-end costs were $714,000 and $795,000, respectively. The appropriate cost indexes are 1.05 for Year 1 and 1.06 for Year 2. Required: Complete the below table to calculate the inventory value at the end of Year 1 and Year 2 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 1/1/Year 1 12/31/Year 1 12/31/Year 2 Inventory Layers Converted to Base Year Cost Inventory at Year-End Cost Year-End Cost Index = Inventory Layers at Base Year Cost Base Base Year 1 Base Inventory Layers Converted to Cost Inventory Layers at Base Year Cost Year-End Cost Index = Inventory Layers Converted to Cost Inventory DVL Cost $ $ 0

On January 1, Year 1, a company adopted the dollar-value LIFO method for its one inventory pool. The pool's value on this date was $670,000. The Year 1 and Year 2 ending inventory valued at year-end costs were $714,000 and $795,000, respectively. The appropriate cost indexes are 1.05 for Year 1 and 1.06 for Year 2. Required: Complete the below table to calculate the inventory value at the end of Year 1 and Year 2 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 1/1/Year 1 12/31/Year 1 12/31/Year 2 Inventory Layers Converted to Base Year Cost Inventory at Year-End Cost Year-End Cost Index = Inventory Layers at Base Year Cost Base Base Year 1 Base Inventory Layers Converted to Cost Inventory Layers at Base Year Cost Year-End Cost Index = Inventory Layers Converted to Cost Inventory DVL Cost $ $ 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Topic Video
Question

Qq.46.

Subject :- Account 

On January 1, Year 1, a company adopted the dollar-value LIFO method for its one inventory pool. The pool's value on this date was $670,000. The Year 1 and Year 2 ending inventory valued at year-end costs were $714,000 and $795,000, respectively. The appropriate cost indexes are 1.05 for Year 1 and 1.06 for Year 2. Required: Complete the below table to calculate the inventory value at the end of Year 1 and Year 2 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 1/1/Year 1 12/31/Year 1 12/31/Year 2 Inventory Layers Converted to Base Year Cost Inventory at Year-End Cost Year-End Cost Index = = = Inventory Layers at Base Year Cost Base Base Year 1 Base Year 1 Year 2 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
Transcribed Image Text:On January 1, Year 1, a company adopted the dollar-value LIFO method for its one inventory pool. The pool's value on this date was $670,000. The Year 1 and Year 2 ending inventory valued at year-end costs were $714,000 and $795,000, respectively. The appropriate cost indexes are 1.05 for Year 1 and 1.06 for Year 2. Required: Complete the below table to calculate the inventory value at the end of Year 1 and Year 2 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 1/1/Year 1 12/31/Year 1 12/31/Year 2 Inventory Layers Converted to Base Year Cost Inventory at Year-End Cost Year-End Cost Index = = = Inventory Layers at Base Year Cost Base Base Year 1 Base Year 1 Year 2 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
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS