Chapter 8, Problem 8.14P

Dollar-value LIFO

• LO8–8

Kingston 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, 2018, with an inventory of $150,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows:

Year Ended December 31	Ending Inventory at Year-End Costs	Cost Index (Relative to Base Year)
2018	$200,000	1.08
2019	245,700	1.17
2020	235,980	1.14
2021	228,800	1.10

Required:

Calculate inventory amounts at the end of each year.