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Company A adopted Dollar Value LIFO on January 1, 2006. The following table shows the ending inventory at current year cost and the cost index
Company A adopted Dollar Value LIFO on January 1, 2006. The following table shows the ending inventory at current year cost and the cost index for 5 years. Calculate the dollar value ending inventory to be recorded on the balance for each year. Show all calculations.
Date | Ending Inventory at current year cost | Cost Index |
1/2/2006 | $800,000 | 1.00 |
12/31/2006 | $860,000 | 1.06 |
12/31/2007 | $950,000 | 1.14 |
12/31/2008 | $980,000 | 1.21 |
12/31/2009 | $1,050,000 | 1.27 |
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