Gross Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2017. Its inventory at that date was $440,000 and the relevant price index was 100. Information regarding inventory for subsequent years is as follows:

Inventory at Current

Date Current Prices Price Index(%)

December 31, 2018 $513,600 107

December 31, 2019 580,000 125

December 31, 2020 650,000 130

4- What is the cost of the ending inventory at December 31, 2018 under dollar-value LIFO?

a. $480,000.

b. $513,600.

c. $482,800.

d. $470,800.

e. None of the above

5- What is the cost of the ending inventory at December 31, 2019 under dollar-value LIFO?

a. $464,000.

b. $462,800.

c. $480,000.

d. $465,680.

e. None of the above

Answer rating: 100% (QA)

Inventory Layers Converted to Base Year Cost Inventory Layers Converted to Cost Invento... View the full answer