Question
On January 1, 2016, Avondale Lumber adopted the dollar-value LIFO inventory method. The inventory value for its one inventory pool on this date was $315,000.
On January 1, 2016, Avondale Lumber adopted the dollar-value LIFO inventory method. The inventory value for its one inventory pool on this date was $315,000. An internally generated cost index is used to convert ending inventory to base year. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: |
Year Ended December 31 | Inventory Year-End Costs | Cost Index (Relative to Base Year) | |||
2016 | $ | 410,800 |
| 1.04 |
|
2017 |
| 423,360 |
| 1.08 |
|
2018 |
| 473,060 |
| 1.09 |
|
2019 |
| 508,480 |
| 1.12 |
|
Required: |
Calculate inventory amounts at the end of each year. |
|
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