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Can someone please look over my work and make sure I'm doing this right? My work is the writing in blue. Any feedback would be
Can someone please look over my work and make sure I'm doing this right? My work is the writing in blue. Any feedback would be greatly appreciated. Thanks.
. Steven's Co. adopted the Dollar Value LIFO method in 2019. Determine the ending inventory amount for years, 1,2 & 3 and place your answers at the bottom of the page. Steven's Co.base year inventory was $1,500,000. At the end of 2020, the ending inventory value was $1,705,000. The price level relative to the base year is now 1.10. At the end of year two, it has an ending inventory value of $1,800,000. The price level relative to the base year is now 1.20. At the end of year three, it has an ending inventory value of $1,940,000. The price level relative to the base year is now 1.25. 2019 1,500,000 2020 1,705,000 2021 1,800,000 2022 1,940,000 1.00 1.10 1.20 1.25 1,500,000 50,000 -50,000 52,000 Year 1 1,500,000 + 55000 = $1,555,000 Year 2 1,500,000 + 55,000 - 55,000 = $1,500,000 Year 3 1,500,000 + 55,000 55,000 + 2500 $1,502,500Step by Step Solution
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