Question - Presented below is information related to T Company.
Ending inventory at most recent costs Cost index
12-31-05 $5,000,000 100.0
12-31-06 $5,252,000 101.0
12-31-07 $5,406,000 102.0
12-31-08 $5,252,000 104.0
12-31-09 $5,538,500 104.5
12-31-10 $5,088,000 106.0
a. Compute the ending inventory for T for 12-31-06 through 12-31-10 using the dollar-value LIFO method.
b. Assume that net purchases during 2010 totaled $71,000,000. Compute COGS for the year ended 12-31-10.