Question
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
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, 2018, with an inventory of $201,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows:
Year Ended Ending Inventory Cost Index December 31 at Year-End Costs (Relative to Base Year) 2018 $ 291,600 1.08 2019 376,420 1.18 2020 355,350 1.15 2021 349,650 1.11 Required: Calculate inventory amounts at the end of each year.
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