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 $219,000. 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 Base Year) December 31 2024 2025 2026 2027 Year-End Costs $333,500 426,250 403,820 395,300 1.15 1.25 1.22 1.18 Required: Calculate inventory amounts at the end of each year. Note: Round intermediate calculations and final answers to the nearest whole dollars.
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 $219,000. 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 Base Year) December 31 2024 2025 2026 2027 Year-End Costs $333,500 426,250 403,820 395,300 1.15 1.25 1.22 1.18 Required: Calculate inventory amounts at the end of each year. Note: Round intermediate calculations and final answers to the nearest whole dollars.
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 67P
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