Ashbrook Company adopted the dollar-value LIFO method on January 1, 2014 (using

Question

Ashbrook Company adopted the dollar-value LIFO method on January 1, 2014 (using internal price indexes and multiple pools). The following data are available for inventory pool A for the 2 years following adoption of LIFO.

Computing an internal price index and using the dollar-value LIFO method, at what amount should the inventory be reported at December 31, 2015? (Round price index and dollar-value LIFO inventory to 0 decimal places, e.g. 162.)

Donovan Inc., a retail store chain, had the following information in its general ledger for the year 2015.

What is Donovan

Inventory At Base-Year
Cost
At Current-Year
Cost
1/1/14 $208,000 $208,000 12/31/14 241,000 265,100 12/31/15 265,000 296,800 Ashbrook Company adopted the dollar-value LIFO method on January 1, 2014 (using internal price indexes and multiple pools). The following data are available for inventory pool A for the 2 years following adoption of LIFO.

Explanation / Answer

I found an example word-for-word of what you are asking. I tried to work it out myself but I don't thoroughly understand what is going on here, and I certainly don't want to mess this problem up. It may be of more use to you. If you type in " retail store chain, had the following information in its general ledger for the" in google, it will be the first link (it won't let me see the whole link so I cannot copy and paste :/ ) but it the link starts out like: www.homeworkmarket.com/.../chapter_homework_due_sunday_at_3p

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