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On January 1, 2016, the National Furniture Company adopted the dollar-value LIFO method of computing inventory. An internal cost index is used to convert ending
On January 1, 2016, the National Furniture Company adopted the dollar-value LIFO method of computing inventory. An internal cost index is used to convert ending inventory to base year. Inventory on January 1 was $207,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: |
Year Ended December 31 | Inventory at Year-end Costs | Cost Index (Relative to Base Year) |
2016 | $274,320 | 1.08 |
2017 | 320,320 | 1.12 |
2018 | 323,150 | 1.15 |
Required:
Compute inventory amounts at the end of each year. |
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