Question
Olson Company adopted the dollar-value LIFO method for inventory valuation at the beginning of 2015. The following information about the inventory at the end of
Olson Company adopted the dollar-value LIFO method for inventory valuation at the beginning of 2015. The following information about the inventory at the end of each year is available from Olson's records:
| Year | Current Costs | Index |
|---|---|---|
| 2014 | $50,000 | 100 |
| 2015 | 60,000 | 108 |
| 2016 | 70,000 | 115 |
| 2017 | 73,000 | 125 |
| 2018 | 78,000 | 135 |
Required:
1. Calculate the dollar-value LIFO inventory at the end of each year. Do not round your intermediate calculations. Round final answers to the nearest dollar.
| 2015 | 2016 | 2017 | 2018 | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Ending Inventory at LIFO | $ | $ | $ | $
2. Prepare the appropriate disclosures for the 2018 annual report if Olson uses current cost internally and LIFO for financial reporting. Round final answers to the nearest dollar.
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