Bond Company adopted the dollar-value LIFO inventory method on January 1, 2021. In applying the LIFO method,
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Bond Company adopted the dollar-value LIFO inventory method on January 1, 2021. In applying the LIFO method, Bond uses internal cost indexes and the multiple-pools approach. The following data were available for Inventory Pool No. 3 for the two years following the adoption of LIFO:
Ending Inventory | |||||||||||
Year | At Year-End | At Base Year Cost | Cost Index | ||||||||
1/1/2021 | $ | 300,000 | $ | 300,000 | 1.00 | ||||||
12/31/2021 | 337,575 | 321,500 | 1.05 | ||||||||
12/31/2022 | 431,480 | 354,000 | 1.22 | ||||||||
Under the dollar-value LIFO method, the inventory at December 31, 2022, should be
Related Book For
Intermediate Accounting
ISBN: 978-0134730370
2nd edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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