Question
On January 1, 2021, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $101,500. The ending inventory, valued at year-end
On January 1, 2021, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $101,500. The ending inventory, valued at year-end costs, and the relative cost index for each of the next three years is below:
| Year-end | Ending inventory at year-end costs | Cost Index | |||||
| 2021 | $ | 130,725 | 1.05 | ||||
| 2022 | 149,600 | 1.10 | |||||
| 2023 | 159,900 | 1.20 | |||||
What inventory balance should Badger report on its 12/31/2021 balance sheet?
A. $130,500
B. $125,650
C. $124,500
D. $101,500
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1st Edition
1647481813, 978-1647481810
