Chapter 8, Problem 8.15P

Dollar-value LIFO

• LO8–8

On January 1, 2018, Avondale Lumber adopted the dollar-value LIFO inventory method. The inventory value for its one inventory pool on this date was $260,000. An internally generated cost index is used to convert ending inventory to base year. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows:

Year Ended December 31	Inventory Year-End Costs	Cost Index (Relative to Base Year)
2018	$340,000	1.02
2019	350,000	1.06
2020	400,000	1.07
2021	430,000	1.10

Required:

Calculate inventory amounts at the end of each year.