Question
On January 1, 2021, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $101,700. 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 $101,700. 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 | $ | 131,355 | 1.05 | ||||
| 2022 | 150,480 | 1.10 | |||||
| 2023 | 160,740 | 1.20 | |||||
What inventory balance would Badger report on its 12/31/2023 balance sheet?
Could someone explain this indetailed step by step and tell me where the 11,500 and 23000 come from?
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
