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Under the last-in, first-out (LIFO) inventory valuation method, a price index for inventory must be established for tax purposes. The quantity weights are based on
Under the last-in, first-out (LIFO) inventory valuation method, a price index for inventory must be established for tax purposes. The quantity weights are based on year-ending inventory levels.
Unit Price ($) | |||
Product | Ending Inventory | Beginning | Ending |
A | 500 | 0.15 | 0.19 |
B | 50 | 1.40 | 1.80 |
C | 100 | 4.50 | 4.20 |
D | 60 | 11.00 | 13.20 |
Use the beginning-of-the-year price per unit as the base-period price and develop a weighted aggregate index for the total inventory value at the end of the year. (Round your answer to the nearest integer.)
I = __________
What type of weighted aggregate price index must be developed for the LIFO inventory valuation?
-Paasche index
-Laspeyres index
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