Asked Jan 17, 2020

At the beginning of 2016, a company adopts the dollar-value LIFO inventory method for its one inventory pool. The pool’s value on that date was $1,400,000. The 2016 ending inventory valued at year-end costs was $1,664,000 and the year-end cost index was 1.04. Calculate the inventory value at the end of 2016 using the dollar-value LIFO method.


Expert Answer

Step 1

Dollar-Value-LIFO: This method shows all the inventory figures at dollar price rather than units. Under this inventory method, the units that are purchased at last are sold first. Thus, it starts from the selling of the units recently purchased and ending with the beginning inventory.

Step 2

Calculation of the inventory value at the end of 2016 ...

Accounting homework question answer, step 2, image 1

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