A company has only one inventory pool. On December 31, Year 1, the company adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $218,000. Inventory data are as follows: Year Year 2 Year 3 Year 4 Ending Inventory at Year-Ending Inventory at Base End Costs $ 268,800 361,100 364,800 Year Costs $ 256,000 314,000 304,000 Required: Compute the inventory at December 31, Year 2, Year 3, and Year 4, using the dollar-value LIFO method. Note: Round "Year end cost index" to 2 decimal places.
A company has only one inventory pool. On December 31, Year 1, the company adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $218,000. Inventory data are as follows: Year Year 2 Year 3 Year 4 Ending Inventory at Year-Ending Inventory at Base End Costs $ 268,800 361,100 364,800 Year Costs $ 256,000 314,000 304,000 Required: Compute the inventory at December 31, Year 2, Year 3, and Year 4, using the dollar-value LIFO method. Note: Round "Year end cost index" to 2 decimal places.
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 67P
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Question
![A company has only one inventory pool. On December 31, Year 1, the company adopted the dollar-value LIFO inventory method. The
inventory on that date using the dollar-value LIFO method was $218,000. Inventory data are as follows:
Year
Year 2
Year 3
Year 4
Required:
Compute the inventory at December 31, Year 2, Year 3, and Year 4, using the dollar-value LIFO method.
Note: Round "Year end cost index" to 2 decimal places.
1
12/31/Year
2
Ending Inventory at Year-Ending Inventory at Base
End Costs
$ 268,800
361,100
364,800
Date
12/31/Year
3
12/31/Year
4
12/31/Year
Inventory Layers Converted to Base Year Cost
Inventory
Layers at
Base Year
Cost
Inventory
at Year-End
Cost
×
×
Year Costs
$ 256,000
314,000
304,000
X
Year-
End
Cost
Index
X
X
X
x Base
x Base
Year
2
X Base
Year
2
Year
3
x Base
Year
2
Year
3
Year
Inventory Layers Converted to Cost
Year-
End
Cost
Index
Inventory
Layers at
Base Year
Cost
X
X
X
X
X
X
X
X
X
X
X
X
X
X
=
=
X =
Inventory
Layers
Converted
to Cost
X $
× ×
X
X $
× ×
Inventory
DVL Cost
X $
0
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad56a154-24ad-4acd-8bec-9ede156e2e0c%2F55cd22ea-881d-4b72-958e-bfe4e25fc4a0%2Fxp20t92_processed.png&w=3840&q=75)
Transcribed Image Text:A company has only one inventory pool. On December 31, Year 1, the company adopted the dollar-value LIFO inventory method. The
inventory on that date using the dollar-value LIFO method was $218,000. Inventory data are as follows:
Year
Year 2
Year 3
Year 4
Required:
Compute the inventory at December 31, Year 2, Year 3, and Year 4, using the dollar-value LIFO method.
Note: Round "Year end cost index" to 2 decimal places.
1
12/31/Year
2
Ending Inventory at Year-Ending Inventory at Base
End Costs
$ 268,800
361,100
364,800
Date
12/31/Year
3
12/31/Year
4
12/31/Year
Inventory Layers Converted to Base Year Cost
Inventory
Layers at
Base Year
Cost
Inventory
at Year-End
Cost
×
×
Year Costs
$ 256,000
314,000
304,000
X
Year-
End
Cost
Index
X
X
X
x Base
x Base
Year
2
X Base
Year
2
Year
3
x Base
Year
2
Year
3
Year
Inventory Layers Converted to Cost
Year-
End
Cost
Index
Inventory
Layers at
Base Year
Cost
X
X
X
X
X
X
X
X
X
X
X
X
X
X
=
=
X =
Inventory
Layers
Converted
to Cost
X $
× ×
X
X $
× ×
Inventory
DVL Cost
X $
0
0
0
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