On January 1, 2018, the Haskins Company adopted the dollar-value LIFO method for

Question

On January 1, 2018, the Haskins Company adopted the dollar-value LIFO method for its one inventory pool. The pool’s value on this date was $740,000. The 2018 and 2019 ending inventory valued at year-end costs were $780,000 and $861,000, respectively. The appropriate cost indexes are 1.04 for 2018 and 1.05 for 2019. Required: Complete the below table to calculate the inventory value at the end of 2018 and 2019 using the dollar-value LIFO method. (Round "Year end cost index" to 2 decimal places. Round other final answer values to the nearest whole dollars.)

Explanation / Answer

Complete the below table to calculate the inventory value at the end of 2018 and 2019 using the dollar-value LIFO method

Year Ending inventory (at cost) Ending inventory at base year price Ending inventory at dollar value LIFO method 2018 780000 780000/1.04 = 750000 (740000*1+10000*1.04) 750400 2019 861000 861000/1.05 = 820000 (740000*1+10000*1.04+70000*1.05) 823900

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