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Problem - Dollar-value LIFO
On January 1, 2016, Avondale Lumber adopted the dollar-value LIFO inventory method. The inventory value for its one inventory pool on this date was $295,000. An internally generated cost index is used to convert ending inventory to base year. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows:
Year Ended December 31 Inventory Year-End Costs Cost Index (Relative to Base Year)
2016 $ 382,130 1.03
2017 393,760 1.07
2018 447,120 1.08
2019 479,520 1.11
Required: Calculate inventory amounts at the end of each year.
12/31/16 = 373,280
12/31/17
12/31/18
12/31/19
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