Problem 8-15 (Algo) Dollar-value LIFO [LOB-8] On January 1, 2024, a company adopted the dollar-value LIFO inventory method. The inventory value for its one inventory pool on this date was $270,000. An internally generated cost index is used to convert ending inventory to bese year. Year-end Inventories at year- end costs and cost indexes for its one inventory pool were as follows: Year Ended December 31 2024 2025 2026 Inventory Year- Cost Index (Relative End Costs $354,640 365,040 413,110 141,840 to Base Year) 1.04 1.08 1.09 Required: Calculate inventory amounts at the end of each year Note: Round intermediate calculations and final answers to the nearest whole dollars. Date Inventory Layers Converted to Base Year Cost Inventory at Year-End Inventory Cost Index Layers at Base Year Cost Year-End Cost 01012024 12/31/2024 12012025 12012026 Inventory Layers Converted to Cost Inventory DVL Cost Inventory Layers at Year- Inventory End Cost Layers Converted to Cost Index Cost Base 2024 Base 2024 2026 2024 2025 2026 12/01/2027 Base 2024 2025 2026 2027

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 15P: (Appendix 8.1) Inventory Write-Down The following are the inventories for the years 2019, 2020, and...
icon
Related questions
Question
Problem 8-15 (Algo) Dollar-value LIFO [LOB-8]
On January 1, 2024, a company adopted the dollar-value LIFO inventory method. The inventory value for its one inventory pool on this
date was $270,000. An internally generated cost index is used to convert ending inventory to bese year. Year-end Inventories at year-
end costs and cost indexes for its one inventory pool were as follows:
Year Ended
December 31
2024
2025
2026
Inventory Year- Cost Index (Relative
End Costs
$354,640
365,040
413,110
141,840
to Base Year)
1.04
1.08
1.09
Required:
Calculate inventory amounts at the end of each year
Note: Round intermediate calculations and final answers to the nearest whole dollars.
Date
Inventory Layers Converted to Base Year
Cost
Inventory at Year-End
Inventory
Cost
Index
Layers at Base
Year Cost
Year-End
Cost
01012024
12/31/2024
12012025
12012026
Inventory Layers Converted to Cost
Inventory DVL
Cost
Inventory
Layers at
Year-
Inventory
End
Cost
Layers
Converted to
Cost
Index
Cost
Base
2024
Base
2024
2026
2024
2025
2026
12/01/2027
Base
2024
2025
2026
2027
Transcribed Image Text:Problem 8-15 (Algo) Dollar-value LIFO [LOB-8] On January 1, 2024, a company adopted the dollar-value LIFO inventory method. The inventory value for its one inventory pool on this date was $270,000. An internally generated cost index is used to convert ending inventory to bese year. Year-end Inventories at year- end costs and cost indexes for its one inventory pool were as follows: Year Ended December 31 2024 2025 2026 Inventory Year- Cost Index (Relative End Costs $354,640 365,040 413,110 141,840 to Base Year) 1.04 1.08 1.09 Required: Calculate inventory amounts at the end of each year Note: Round intermediate calculations and final answers to the nearest whole dollars. Date Inventory Layers Converted to Base Year Cost Inventory at Year-End Inventory Cost Index Layers at Base Year Cost Year-End Cost 01012024 12/31/2024 12012025 12012026 Inventory Layers Converted to Cost Inventory DVL Cost Inventory Layers at Year- Inventory End Cost Layers Converted to Cost Index Cost Base 2024 Base 2024 2026 2024 2025 2026 12/01/2027 Base 2024 2025 2026 2027
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning