Webster Products, Inc., adopted the dollar-value LIFO method of determining inventory costs for financial and income tax reporting on January 1, 2021. Webster continues to use the FIFO method for internal decision-making purposes. Webster's FIFO inventories at December 31, 2021, 2022, and 2023, were $300,000, $412,500, and $585,000, respectively. Internally generated cost indexes are used to convert FIFO inventory amounts to dollar-value LIFO amounts. Webster estimated these indexes as follows: 1. 2021 2022 2023 Required: 1. Determine Webster's dollar-value LIFO inventory at December 31, 2022 and 2023. 2. Will Webster account for the change (a) retrospectively or (b) prospectively? 2. 1.00 1.25 1.50 LIFO inventory at 2022 LIFO inventory at 2023 Webster account for the change

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Webster Products, Inc., adopted the dollar-value LIFO method of determining inventory costs for financial and income tax reporting on
January 1, 2021. Webster continues to use the FIFO method for internal decision-making purposes. Webster's FIFO inventories at
December 31, 2021, 2022, and 2023, were $300.000, $412.500, and $585,000, respectively. Internally generated cost indexes are
used to convert FIFO inventory amounts to dollar-value LIFO amounts. Webster estimated these indexes as follows:
2021
2022
2823
1.00
1.25
1.50
Required:
1. Determine Webster's dollar-value LIFO inventory at December 31, 2022 and 2023.
2. Will Webster account for the change (a) retrospectively or (b) prospectively?
1. LIFO inventory at 2022
LIFO inventory at 2023
2. Webster account for the change
Transcribed Image Text:Webster Products, Inc., adopted the dollar-value LIFO method of determining inventory costs for financial and income tax reporting on January 1, 2021. Webster continues to use the FIFO method for internal decision-making purposes. Webster's FIFO inventories at December 31, 2021, 2022, and 2023, were $300.000, $412.500, and $585,000, respectively. Internally generated cost indexes are used to convert FIFO inventory amounts to dollar-value LIFO amounts. Webster estimated these indexes as follows: 2021 2022 2823 1.00 1.25 1.50 Required: 1. Determine Webster's dollar-value LIFO inventory at December 31, 2022 and 2023. 2. Will Webster account for the change (a) retrospectively or (b) prospectively? 1. LIFO inventory at 2022 LIFO inventory at 2023 2. Webster account for the change
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