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ts one inventory pool were as follows: ding Inventory at Cost Index (Relative to Year-End Costs $ 336,600 427,350 Base Year) 1.02 1.11 405,000 1.08 395,200 1.04

ts one inventory pool were as follows: ding Inventory at Cost Index (Relative to Year-End Costs $ 336,600 427,350 Base Year) 1.02 1.11 405,000 1.08 395,200 1.04

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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Dinesh bhai 

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 $265,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended Ending Inventory at Cost Index (Relative to December 31 Base Year) 2024 2025 2026 2027 Date Required: Calculate inventory amounts at the end of each year. Note: Round intermediate calculations and final answers to the nearest whole dollars. 01/01/2024 12/31/2024 12/31/2025 12/31/2026 Year-End Costs $336,600 427,350 405,000 395, 200 12/31/2027 Inventory Layers Converted to Base Year Cost Inventory at Year-End Cost Inventory Layers at Base Year Cost 1.02 1.11 1.08 1.04 Inventory Layers Converted to Cost Inventory Layers Converted to Cost Base Base 2024 Base 2024 2025 Base 2024 2025 2026 Base 2024 2025 2026 2027 Inventory Layers at Base Year Cost Inventory DVL Cost $ $ $ $ $ 0 0 0 0 0
Transcribed Image Text: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 $265,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended Ending Inventory at Cost Index (Relative to December 31 Base Year) 2024 2025 2026 2027 Date Required: Calculate inventory amounts at the end of each year. Note: Round intermediate calculations and final answers to the nearest whole dollars. 01/01/2024 12/31/2024 12/31/2025 12/31/2026 Year-End Costs $336,600 427,350 405,000 395, 200 12/31/2027 Inventory Layers Converted to Base Year Cost Inventory at Year-End Cost Inventory Layers at Base Year Cost 1.02 1.11 1.08 1.04 Inventory Layers Converted to Cost Inventory Layers Converted to Cost Base Base 2024 Base 2024 2025 Base 2024 2025 2026 Base 2024 2025 2026 2027 Inventory Layers at Base Year Cost Inventory DVL Cost $ $ $ $ $ 0 0 0 0 0
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