Question
7. Victor Manufacturing Co. switched from FIFO to LIFO on January 1, 2016 for external reporting and income tax purposes. On that date, the FIFO
7. Victor Manufacturing Co. switched from FIFO to LIFO on January 1, 2016 for external reporting and income tax purposes. On that date, the FIFO inventory equaled $360,000. The ensuing three-year period resulted in the following:
|
Date | Inventory Year-End Costs | Cost Index |
| December 31, 2016 | $438,000 | 1.05 |
| December 31, 2017 | 460,000 | 1.15 |
| December 31, 2018 | 520,000 | 1.25 |
The ending inventory at December 31, 2018, using the Dollar-value LIFO method would be
| a. | $422,000 |
| b. | $402,000 |
| c. | $426,000 |
| d. | $420,400 |
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ISE Managerial Accounting For Managers
Authors: Eric Noreen, Peter C. Brewer, Ray H. Garrison
5th Edition
1260570010, 9781260570014
