Question
Ponce Company adopted the dollar-value LIFO inventory method on January 1, 2020. In applying the LIFO method, Ponce Company uses internal cost indexes and the
Ponce Company adopted the dollar-value LIFO inventory method on January 1, 2020. In applying the LIFO method, Ponce Company uses internal cost indexes and the multiple-pools approach. The following data were available for Inventory Pool No. 3 for the two years following the adoption of LIFO:
| Ending Inventory | |||
| Year | At Current Cost | At Base Year Cost | Cost Index |
| 1/1/2020 | $300,000 | $300,000 | 1.00 |
| 12/31/2020 | 345,600 | 320,000 | 1.08 |
| 12/31/2021 | 420,000 | 350,000 | 1.20 |
Under the dollar-value LIFO method, the inventory at December 31, 2021, should be:
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Global Strategy
Authors: Mike W. Peng
5th Edition
0357512367, 978-0357512364
