Jennifer Inc. adopted dollar-value LIFO on December 31, 2008. Data for 20082011 follow: Inventory and index on

Jennifer Inc. adopted dollar-value LIFO on December 31, 2008. Data for 2008–2011 follow:

Inventory and index on the adoption date, December 31, 2008:

Dollar-value LIFO inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $250,000

Price index at year-end (the base year) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00

Inventory information in succeeding years:

1. Compute the inventory value at December 31 of each year under the dollar-value method, assuming new layers are valued using the average price index.
2. Compute the inventory value at December 31, 2011, assuming that dollar-value procedures were adopted at December 31, 2009, rather than in 2008. The beginning layer is the December 31, 2009,balance.

Transcribed Image Text:

Year-End Average Inventory at Year-End Prices Price Index 1.04 1.14 1.20 Price Index Date Dec. 31, 2009 Dec. 3. 2010 Dec. 31, 2011 $314,720 361,800 353,822 1.12 1.20 1.27