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Kingston Company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1, 2016, with an inventory of $147,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows:
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Year Ended
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Ending Inventory
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Cost Index
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December 31
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at Year-End Costs
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(Relative to Base Year)
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2016
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$
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220,500
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1.05
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2017
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283,360
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1.12
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2018
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264,870
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1.09
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2019
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262,150
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1.07
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Required:
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Calculate inventory amounts at the end of each year.
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References
eBook & Resources
Worksheet Difficulty: 2 Medium Learning Objective: 08-08 Determine ending inventory using the dollar-value LIFO inventory method.