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On January 1, 2018, 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, 2018, 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 $205,000. 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 $270,000 313,600 316,250 Cost Index (Relative to Base Year) 1.08 2018 2019 1.12 2020 1.15 Required: Compute inventory amounts at the end of each year. Date Ending Inventory DVL Cost 12/31/2018 12/31/2019 12/31/2020
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