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Problem 8-14 (Algo) Dollar-value LIFO [LO8-8] A company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1, 2024, with an inventory of $210,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended Ending Inventory at Year-Cost Index (Relative to December 31 End Costs Base Year) 2024 $ 308,000 396,000 2025 2026 374,400 2027 367,250 1.10 1.20 1.17 1.13 Required: Calculate inventory amounts at the end of each year. Note: Round intermediate calculations and final answers to the nearest whole dollars.

Problem 8-14 (Algo) Dollar-value LIFO [LO8-8] A company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1, 2024, with an inventory of $210,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended Ending Inventory at Year-Cost Index (Relative to December 31 End Costs Base Year) 2024 $ 308,000 396,000 2025 2026 374,400 2027 367,250 1.10 1.20 1.17 1.13 Required: Calculate inventory amounts at the end of each year. Note: Round intermediate calculations and final answers to the nearest whole dollars.

FINANCIAL ACCOUNTING
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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Please do not give solution and formulae in image format..thanku

Date 01/01/2024 12/31/2024 12/31/2025 12/31/2026 12/31/2027 Inventory Layers Converted to Base Year Cost Inventory Layers at Base Year Cost $ 210,000 $ 210,000 $ 308,000 $ 280,000 Inventory at Year- End Cost $ 396,000 $ 330,000 ( $ 374,400 $ 367,250 $ 320,000 $325,000 Inventory Layers Converted to Cost Inventory Layers at Base Year Cost Base $ Base $ 2024 $ Base $ 2024 $ 2025 $ Base 2024 2025 2026 Base 2024 2025 2026 2027 210,000 210,000 $ Inventory Layers Converted to Cost $ $ 70,000 $ $ 210,000 $ 210,000 $ 210,000 210,000 77,000 $ 287,000 210,000 $ 210,000 210,000 $ 210,000 70,000 $ 77,000 97,500 $ 117,000 $ 404,000 Inventory DVL Cost $ 210,000 $ 210,000 210,000
Transcribed Image Text:Date 01/01/2024 12/31/2024 12/31/2025 12/31/2026 12/31/2027 Inventory Layers Converted to Base Year Cost Inventory Layers at Base Year Cost $ 210,000 $ 210,000 $ 308,000 $ 280,000 Inventory at Year- End Cost $ 396,000 $ 330,000 ( $ 374,400 $ 367,250 $ 320,000 $325,000 Inventory Layers Converted to Cost Inventory Layers at Base Year Cost Base $ Base $ 2024 $ Base $ 2024 $ 2025 $ Base 2024 2025 2026 Base 2024 2025 2026 2027 210,000 210,000 $ Inventory Layers Converted to Cost $ $ 70,000 $ $ 210,000 $ 210,000 $ 210,000 210,000 77,000 $ 287,000 210,000 $ 210,000 210,000 $ 210,000 70,000 $ 77,000 97,500 $ 117,000 $ 404,000 Inventory DVL Cost $ 210,000 $ 210,000 210,000
Problem 8-14 (Algo) Dollar-value LIFO [LO8-8] A company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1, 2024, with an inventory of $210,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended Ending Inventory at Year-Cost Index (Relative to December 31 Base Year) 2024 2025 2026 2027 End Costs $ 308,000 396,000 374,400 367,250 1.10 1.20 1.17 1.13 Required: Calculate inventory amounts at the end of each year. Note: Round intermediate calculations and final answers to the nearest whole dollars.
Transcribed Image Text:Problem 8-14 (Algo) Dollar-value LIFO [LO8-8] A company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1, 2024, with an inventory of $210,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended Ending Inventory at Year-Cost Index (Relative to December 31 Base Year) 2024 2025 2026 2027 End Costs $ 308,000 396,000 374,400 367,250 1.10 1.20 1.17 1.13 Required: Calculate inventory amounts at the end of each year. Note: Round intermediate calculations and final answers to the nearest whole dollars.
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