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 $820,000. The 2018 and 2019 ending inventory valued at year-end costs were $858,000 and $945,000, respectively. The appropriate cost indexes are 1.04 for 2018 and 1.08 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. (Round "Year end cost index" to 2 decimal places. Round other final answer values to the nearest whole dollars.)

Inventory value at Dollar valu LIFO method

so value at year end 2018 is $825200 and year end 2019 is $879200

Year Inventory at year end price Price index Inventory at base year price Change from prior year

Inventory value at Dollar valu LIFO method

jan 1 2018 820000 100 820000 0 820000 end 2018 858000 104 825000 5000 (820000*1+5000*1.04)=825200 End 2019 945000 108 875000 50000 (820000*1+5000*1.04+50000*1.08)=879200

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