Question
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 $300,000.
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 $300,000. Inventory data for 2021 through 2023 are as follows:
| Date | Ending Inventory at Year-End Costs | Cost Index | |||
| 12/31/2021 | $ | 332,800 | 1.04 | ||
| 12/31/2022 | 368,500 | 1.10 | |||
| 12/31/2023 | 383,500 | 1.18 | |||
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 | = | Base | = | $0 | ||||||||
| 12/31/2021 | = | Base | = | |||||||||
| 2021 | = | $0 | ||||||||||
| 12/31/2022 | = | Base | = | |||||||||
| 2021 | = | |||||||||||
| 2022 | = | $0 | ||||||||||
| 12/31/2023 | = | Base | = | |||||||||
| 2021 | = | |||||||||||
| 2022 | = | |||||||||||
| 2023 | = | $0 | ||||||||||
rev: 01_14_2020_QC_CS-195439
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Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
7th Edition
978-0470477151, 978-0-470-5562, 470556242, 0-470-55624-2, 9780470556245, 978-0470507018
