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
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
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 16E: Dollar-Value LIFO A company adopted the LIFO method when its inventory was 1,800. One year later its...
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