TB MC Qu. 8-111 (Static) A company has the following information available... A company has the following information available that was used to report inventory using the dollar-value LIFO method. Year 12/31/2023 12/31/2024 Year-End Cost Cost Index $ 250,000 259,000 1.00 1.06 For the year ended 12/31/2024, the company reported inventory of $274,540 (= $259,000 x 1.06). Which of the following statements is correct? Multiple Choice The amount reported for ending inventory should be calculated as $250,000+ ($9,000 +1.06). The amount reported for ending inventory should The amount reported for ending inventory is correct. < Prev calculated as $259,000+ 1.06. 16 of 16 Next
TB MC Qu. 8-111 (Static) A company has the following information available... A company has the following information available that was used to report inventory using the dollar-value LIFO method. Year 12/31/2023 12/31/2024 Year-End Cost Cost Index $ 250,000 259,000 1.00 1.06 For the year ended 12/31/2024, the company reported inventory of $274,540 (= $259,000 x 1.06). Which of the following statements is correct? Multiple Choice The amount reported for ending inventory should be calculated as $250,000+ ($9,000 +1.06). The amount reported for ending inventory should The amount reported for ending inventory is correct. < Prev calculated as $259,000+ 1.06. 16 of 16 Next
Chapter1: Financial Statements And Business Decisions
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TB MC Qu. 8-111 (Static) A company has the following information available...
A company has the following information available that was used to report inventory using the dollar-value LIFO method.
Year
12/31/2023
12/31/2024
Cost Index
1.00
1.06
For the year ended 12/31/2024, the company reported inventory of $274,540 (= $259,000 x 1.06). Which of the following statements is correct?
F2
Year-End Cost
$ 250,000
259,000
Multiple Choice
O
#
The amount reported for ending inventory should be calculated as $250,000+ ($9,000 + 1.06).
The amount reported for ending inventory should be calculated as $259,000 + 1.06.
The amount reported for ending inventory is correct.
20
F3
$
000
F4
%
F5
< Prev
A
S
F6
16 of 16
&
#
K
F7
Next
*
*
O
DII
F8
44
F9
A
F10
A
FIT
Expert Solution
Step 1 Description
According to the given question, we are required to compute the cost of inventory or find the correct options from the available options.
The Dollar-value LIFO method:
The Dollar-value LIFO method refers to an accounting method for valuing the cost of inventory with respect to the price index and assigns Dollar amounts to inventory prices. It is following the LIFO method.
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