Question
Ajman Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2017. Its inventory at that date was 220000 and the relevant price
Ajman Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2017. Its inventory at that date was 220000 and the relevant price index was 100. Information regarding inventory for subsequent years is as follows.
Date Inventory at Current Prices Current Price index
December 31, 2018 256800 107
December 31, 2019 320000 108
December 31, 2020 350000 120
A. What is the cost of ending inventory on December 31, 2018 under dollar value LIFO
B. What is the cost of ending inventory on December 31, 2019 under dollar value LIFO
C. What is the cost of ending inventory on December 31, 2020 under dollar value LIFO
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The Mcgraw Hill 36 Hour Course In Finance For Non Financial Managers
Authors: Robert Cooke
2nd Edition
0071425462, 978-0071425469
