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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 $260,000.
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 $260,000. An internally generated cost index is used to convert ending inventory to base year. Year-end inventories at year-end costs ad cost indexes for its one inventory pool were as follows:
Year Ending Inventory Cost Index
December 31 Year End Costs (Relative to Base Year)
2016 $340,000 1.02
2017 350,000 1.06
2018 400,000 1.07
2019 430,000 1.10
Calculate inventory amounts at the end of each year.
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