A company adopted the dollar-value LIFO inventory method on January 1, 2024. In applying the LIFO method, the company uses internal cost indexes and the multiple-pools approach. The following data were available for Inventory Pool No. 3 for the two years following the adoption of LIFO: Year Ending Inventory Cost Index At Year-End At Base Year Cost 1/1/2024 $ 303,500 $ 303,500 1.00 12/31/2024 344,500 325,000 1.06 12/31/2025 435,540 357,000 1.22 Under the dollar-value LIFO method, the inventory on December 31, 2025, should be?
A company adopted the dollar-value LIFO inventory method on January 1, 2024. In applying the LIFO method, the company uses internal cost indexes and the multiple-pools approach. The following data were available for Inventory Pool No. 3 for the two years following the adoption of LIFO: Year Ending Inventory Cost Index At Year-End At Base Year Cost 1/1/2024 $ 303,500 $ 303,500 1.00 12/31/2024 344,500 325,000 1.06 12/31/2025 435,540 357,000 1.22 Under the dollar-value LIFO method, the inventory on December 31, 2025, should be?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 11P: Olson Company adopted the dollar-value LIFO method for inventory valuation at the beginning of 2015....
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A company adopted the dollar-value LIFO inventory method on January 1, 2024. In applying the LIFO method, the company uses internal cost indexes and the multiple-pools approach. The following data were available for Inventory Pool No. 3 for the two years following the adoption of LIFO:
| Year | Ending Inventory | Cost Index | |
|---|---|---|---|
| At Year-End | At Base Year Cost | ||
| 1/1/2024 | $ 303,500 | $ 303,500 | 1.00 |
| 12/31/2024 | 344,500 | 325,000 | 1.06 |
| 12/31/2025 | 435,540 | 357,000 | 1.22 |
Under the dollar-value LIFO method, the inventory on December 31, 2025, should be?
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