On January 1, 2021, Jacob Marley Company adopted the dollar-value LIFO method for its inventory. The inventory value on this date was $590 million. The December 31, 2021 and 2022 ending inventory valued at year-end costs were $702 million and $810 million, respectively. The appropriate cost indexes are 1.08 for 12/31/2021 and 1.20 for 12/31/2022

Using the dollar-value LIFO method, ending inventory on Jacob Marley's balance sheet at December 31, 2021 is:

a) $637.2 million

b) $637.2 million

c) $650.0 million

d) $654.8 million

Using the dollar-value LIFO method, ending inventory on Jacob Marley's balance sheet at December 31, 2022 is:

a) $692.0 million

b) $810.0 million

c) $675.0 million

d) $684.8 million

Answer rating: 100% (QA)

Dollar LIFO method Under this method items are combined into pools and all increases and decrease... View the full answer