Dollar-Value LIFO
A company adopted the LIFO method when its inventory was $1,800. One year later its ending inventory was $2,100 and costs had increased 5% during the year.
Required
What is the ending inventory using dollar-value LIFO?
Dollar-Value LIFO On January 1, 2006 the Sato Company adopted the dollar-value LIFO method of inventory costing. The company's ending inventory records appear as follows:
|
Year
|
Current Cost
|
Index
|
|
2006
|
$40,000
|
100
|
|
2007
|
56,100
|
120
|
|
2008
|
58,500
|
130
|
|
2009
|
70,000
|
140
|
Required
Compute the ending inventory for the years 2006, 2007, 2008, and 2009, using the dollar-value LIFO method (round to the nearest dollar).