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can you help me finish the question and show the calculation? On January 1, 2021, the Taylor Company adopted the dollar-value LIFO method. The inventory
can you help me finish the question and show the calculation?
On January 1, 2021, the Taylor Company adopted the dollar-value LIFO method. The inventory value for its one inventory pool on this date was $450,000. Inventory data for 2021 through 2023 are as follows:
Date 12/31/2021 12/31/2022 12/31/2023 Ending Inventory at Year-End Costs $488,800 552,900 570,000 Cost Index 1.04 1.14 1.20 Required: Calculate Taylor's ending inventory for 2021, 2022, and 2023. Inventory Layers Converted to Base Year Cost Inventory Layers Converted to Cost Inventory DVL Cost Date Inventory at Year-End Cost Year-End Cost Index Inventory Year-End Inventory Layers at Cost Base Year Layers at Base Year Cost Cost Index $ 450,000 Bases 450,000 x 1.00 $ 470,000 Bases 450,000 x 1.00 2021 $ 20,000 * 1.04 Inventory Layers Converted to Cost $ 450,000 $ 01/01/2021 450,000 $ 450,000 $ 488,800 1.00 1.04 12/31/2021 450,000 $ $ 20,800 $ 470,800 12/31/2022 $ 552,900 + 1.14 = $ = $ 485,000 Base $ 2021 $ 2022 $ 450,000 1.00 20,000 x 1.04 15,000 x 1.14 $ 450,000 20,800 17,100 $ = $ 487,900 1 12/31/2023 $ 570,000 1.20 = $ 450,000 x 1.00 = $ 450,000 475,000 Bases 2021 2022 x 1.04 x 1.14 = 2023 $ 450,000Step by Step Solution
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