FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Bond Company adopted the dollar-value LIFO inventory method on January 1, 2021. In applying the LIFO
method, Bond 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:
Inventory
At Base
Year Cost
Ending
At Year-
End
Year
1/1/2021 $310,000
$310,000
12/31/2021 350,460
324,500
12/31/2022 430,660 353,000
Cost
Index
1.00
1.08
1.22
Under the dollar-value LIFO method, the inventory at December 31, 2022, should be
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