Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2018, the Haskins Company adopted the dollar-value LIFO method for its one inventory pool. The pools value on this date was $840,000.

On January 1, 2018, the Haskins Company adopted the dollar-value LIFO method for its one inventory pool. The pool’s value on this date was $840,000. The 2018 and 2019 ending inventory valued at year-end costs were $884,000 and $954,000, respectively. The appropriate cost indexes are 1.04 for 2018 and 1.06 for 2019.

Required:
Complete the below table to calculate the inventory value at the end of 2018 and 2019 using the dollar-value LIFO method. (Round "Year end cost index" to 2 decimal places. Round other final answer values to the nearest whole dollars.)

Inventory Layers Converted to Base Year Cost Inventory Layers Converted to Cost Ending Inventory DVL Cost
Date Inventory at Year-End Cost Year-End Cost Index Inventory Layers at Base Year Cost Inventory Layers at Base Year Cost Year-End Cost Index = Inventory Layers Converted to Cost
01/01/2018 = Base = $0
12/31/2018 = Base =
2018 = $0
12/31/2019 = Base =
2018 =
2019 = $0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To complete the table and calculate the inventory value at the end of 2018 and 2019 ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

9th Edition

125972266X, 9781259722660

More Books

Students also viewed these Accounting questions

Question

What is the MRP term for the time periods used in planning?

Answered: 1 week ago

Question

What is goodwill and how is it measured?

Answered: 1 week ago

Question

How do they clash as a result?

Answered: 1 week ago