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6 A company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year.
6 A 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, 2024, with an inventory of $285,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended December 31 2024 2025 2026 eBook 2027 Required: Ending Inventory at Year-Cost Index (Relative to End Costs $ 399,600 497,640 473,470 457,800 Base Year) 1.08 1.16 1.13 1.09 Print ferences Calculate inventory amounts at the end of each year. Note: Round intermediate calculations and final answers to the nearest whole dollars. Inventory Layers Converted to Base Year Cost Inventory Layers Converted to Cost Inventory DVL Cost Date: Inventory at Year-End Cost Inventory Layers at Base Year Cost Inventory Layers at Base Inventory Layers Converted to Year Cost Cost 01/01/2024 Base 12/31/2024 Base 2024 12/31/2025 Base 2024 2025 12/31/2026 Base 2024 2025 2026 12/31/2027 Base 2024
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