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I don't know what went wrong. Can you please revise my homework? Kingston Company uses the dollar-value LIFO method of computing inventory. An external price
I don't know what went wrong. Can you please revise my homework?
Kingston Company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1, 2021, with an inventory of $280,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended December 31 2021 2022 2023 2024 Ending Inventory at Year-End Costs $403, 200 505, 780 481,440 467,400 Cost Index (Relative to Base Year) 1.12 1.21 1.18 1.14 Required: Calculate inventory amounts at the end of each year. (Round intermediate calculations and final answers to the nearest whole dollars.) Answer is not complete. 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 1.00 1.12 Inventory Layers at Base Year Cost $ 280,000 $ 451,584 280,000 01/01/2021 12/31/2021 $ 280,000 $ 403,200 = = 472,174 12/31/2022 $ 505,780 1.21 = $ 611,994 Year- End Cost Index 1.00 1.00 1.12 1.00 1.12 1.21 1.00 1.12 1.21 666,270 12/31/2023 Inventory Layers Converted to Cost $ 280,000 $ $ 280,000 $ 192,174 $ $ 280,000 $ 192,174 % $ 194,096 $ $ 280,000 $ 192,174 $ 140,983 $ 0 $ $ 280,000 $ 192,174 $ 98,315 $ 481,440 1.18 Base Base 2021 Base 2021 2022 Base 2021 2022 2023 Base 2021 2022 2023 2024 = Inventory Layers at Base Year Cost $ 280,000 $ 280,000 $ 171,584 $ 280,000 $ 171,584 % $ 180,410 $ 280,000 $ 171,584 % $ 116,515 x $ 0 $ 280,000 $ 171,584 $ 81,252 $ 0 $ 0 $ 568,099 = = = = = = = = = = = = = 613,157 12/31/2024 $ 467,400 = $ 532,836 1.00 1.12 1.21 = $ 0 $ 570,489Step by Step Solution
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