Question
Crypto Company adopted the dollar-value LIFO inventory method on December 31, 2020. In applying the LIFO method, Crypto uses internal cost indexes. The following data
Crypto Company adopted the dollar-value LIFO inventory method on December 31, 2020. In applying the LIFO method, Crypto uses internal cost indexes. The following data is available for year-end inventory at current year-end prices for the four years following the adoption of LIFO:
Year | year-end prices | Cost index |
12/31/2020 | $264,000 | 1.00 |
12/31/2021 | $312,000 | 1.04 |
12/31/2022 | $316,960 | 1.12 |
12/31/2023 | $407,100 | 1.18 |
12/31/2024 | $425,000 | 1.25 |
Under the dollar-value LIFO method, compute the dollar-value LIFO inventory for the five years and calculate the LIFO reserve, and provide the journal entry for the year 2024 for recording the LIFO reserve.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started