Which company reports ending inventory

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Question 1: A company uses the dollar-value LIFO method to report inventory. In the current year, the cost index for inventory has increased. If the company reports ending inventory at its year-end cost, which of the following statements is correct?

Option 1: Reported ending inventory is understated.

Option 2: Reported ending inventory is correct.

Option 3: Reported ending inventory is overstated.

Option 4: Cannot determine with the information given.

Reference no: EM132505007

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