On January 1, 2013, Lucas Distributors Inc. adopted the dollar-value LIFO inventory method for income tax and

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On January 1, 2013, Lucas Distributors Inc. adopted the dollar-value LIFO inventory method for income tax and external financial reporting. However, Lucas continued to use the FIFO inventory method for internal accounting and management purposes. In applying the LIFO method, Lucas uses internal conversion cost indexes and the multiple-pools approach under which substantially identical inventory items are grouped into LIFO inventory pools. The following data were available for Inventory Pool No. 1, which is comprised of Products A and B, for the 2 years following the adoption of LIFO:

On January 1, 2013, Lucas Distributors Inc. adopted the dollar-value

Required:
1. Prepare a schedule to compute the internal conversion cost indexes for 2013 and 2014. Round indexes to 2 decimal places
2. Prepare a schedule to compute the inventory amounts at December 31, 2013, and 2014, using the dollar-value LIFO inventory method.

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Related Book For  book-img-for-question

Intermediate Accounting Reporting and Analysis

ISBN: 978-1111822361

1st edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

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