Question
On January 1, 2024, the National Furniture Company adopted the dollar-value LIFO method of computing inventory. An internal cost index is used to convert ending
On January 1, 2024, the National Furniture Company adopted the dollar-value LIFO method of computing inventory. An internal cost index is used to convert ending inventory to base year. Inventory on January 1 was $203,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Year Ended December 31 2024 2025 2026 Inventory at Year-End Costs $ 265,680 306,880 309,350 Cost Index (Relative to Base Year) $ 1.08 1.12 1.15 Required: Compute inventory amounts at the end of each year using the dollar-value LIFO method.
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