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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:Computing Ending Inventory using Dollar-Value LIFO
On January 1 of Year 5, Benn Company changed from FIFO to LIFO for income tax and external reporting purposes. At that date, the beginning FIFO inventory (the base inventory for LIFO purposes) was $224,000. The following information is
available from Benn's records for Year 5 through Year 8.
Year Ending Inventory on a FIFO Basis Price Index
Year 5
$264,000
1.1
Year 6
1.2
Year 7
278,400
322,400
320,000
1.3
Year 8
1.2
Required
Compute the ending inventory on a dollar-value LIFO basis for Year 5, Year 6, Year 7, and Year 8.
Note: Do not round until your final answer. Round your final answer to the nearest whole dollar
Dollar-value LIFO ending inventory, Year 5 $
Dollar-value LIFO ending inventory, Year 6 $
Dollar-value LIFO ending inventory, Year 7 $
Dollar-value LIFO ending inventory, Year 8 $
241,600
232,800
402,800 *
466,800 *
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