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On January 1, 2018, 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, 2018, 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 and cost indexes for its one inventory pool were as follows:
Year Ended | Inventory | Cost Index | |||
December 31 | Year-End Costs | (Relative to Base Year) | |||
2018 | $ | 340,000 |
| 1.02 |
|
2019 |
| 350,000 |
| 1.06 |
|
2020 |
| 400,000 |
| 1.07 |
|
2021 |
| 430,000 |
| 1.10 |
|
Required: Calculate inventory amounts at the end of each year.
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