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On January 1, 2018, the Taylor Company adopted the dollar-value LIFO method. The inventory value for its one inventory pool on this date was $450,000.
On January 1, 2018, the Taylor Company adopted the dollar-value LIFO method. The inventory value for its one inventory pool on this date was $450,000. Inventory data for 2018 through 2020 are as follows:
Date | Ending Inventory at Year-End Costs | Cost Index | |||
12/31/2018 | $ | 488,800 | 1.04 | ||
12/31/2019 | 552,900 | 1.14 | |||
12/31/2020 | 570,000 | 1.20 | |||
Required: Calculate Taylor's ending inventory for 2018, 2019, and 2020.
Ending Inventory DVL Cost Inventory Layers Converted to Base Year Cost Inventory Layers Converted to Cost Inventory Layers at Base Year Cost Inventory Layers Inventory at Year- End Cost Year-End Cost Index Inventory Year-End Date Layers at Base Cost Converted to Index Year Cost Cost 01/01/2018 Base Base 2018 Base 2018 2019 Base 2018 2019 12/31/2018 12/31/2019 12/31/2020Step by Step Solution
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