Kingston Company uses the dollar-value LIFO method of computing inventory. An ex

Question

Kingston Company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1, 2016, with an inventory of $219,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows:

2016 333,500 1.15

2017 426,250 1.25

2018 403,820 1.22

2019 395,300 1.18

Calculate inventory amounts at the end of each year.

Year Ended Ending Inventory Cost Index December 31 at Year-End Costs (Relative to Base Year)

Explanation / Answer

2015 $ 219,000 1.00 2016 $ 290,000 333500 / 1.15 2017 $ 341,000 426250 / 1.25 2018 $ 331,000 403820 /1.22 2019 $ 335,000 395300 / 1.18

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