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On January 1, 2021, the Taylor Company adopted the dollar-value LIFO method. The inventory value for its one inventory pool on this date was $330,000.
On January 1, 2021, the Taylor Company adopted the dollar-value LIFO method. The inventory value for its one inventory pool on this date was $330,000. Inventory data for 2021 through 2023 are as follows:
Date | Ending Inventory at Year-End Costs | Cost Index | |||
12/31/2021 | $ | 371,000 | 1.06 | ||
12/31/2022 | 412,450 | 1.13 | |||
12/31/2023 | 429,550 | 1.21 | |||
Required: Calculate Taylor's ending inventory for 2021, 2022, and 2023.
Inventory Layers Converted to Base Year Cost Inventory Layers Converted to Cost Inventory DVL Cost Date Inventory at Year-End Cost Year-End Cost Index Inventory Layers at Base Year Cost Inventory Layers at Base Year Cost Year-End Cost Index Inventory Layers Converted to Cost 01/01/2021 12/31/2021 12/31/2022 Base Base 2021 Base 2021 2022 Base 2021 2022 2023 12/31/2023Step by Step Solution
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