Question
On January 1, 2021, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $100,100. 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 $100,100. 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 | $ | 126,315 | 1.05 | ||||
| 2022 | 143,440 | 1.10 | |||||
| 2023 | 154,020 | 1.20 | |||||
In determining the inventory balance for Badger to report in its 12/31/2022 balance sheet:
Multiple Choice
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An additional layer of $23,110 is added to the 12/31/2021 balance.
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An additional layer of $11,110 is added to the 12/31/2021 balance.
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An additional layer of $22,110 is added to the 12/31/2021 balance.
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None of these answer choices are correct.
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Standards For The Professional Practice Of Internal Auditing Statements On Internal Auditing Standards Statement Of Responsibilities Of Internal Auditing Code Of Ethics
Authors: Inst
1st Edition
0894133462, 978-0894133466
