Question
Frederick Company adopted the dollar-value LIFO method on January 1, 2015 (using internal price indexes and multiple pools). The following data are available for inventory
Frederick Company adopted the dollar-value LIFO method on January 1, 2015 (using internal price indexes and multiple pools). The following data are available for inventory pool A for the 2 years following adoption of LIFO.
At Base- At Current- Price
Inventory Year Cost Year Cost Index
1/1/15 $100,000 $100,000 100
12/31/15 120,000 126,000 105
12/31/16 128,000 143,360 112
Using the dollar-value LIFO method, at what amount should the inventory be reported at December 31, 2016?
Computation of price indexes:
12/31/15 |
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12/31/16 |
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Dollar-value LIFO inventory 12/31/15:
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Dollar-value LIFO inventory |
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Dollar-value LIFO inventory 12/31/16:
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Dollar-value LIFO inventory |
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