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On January 1, 2012, the National Furniture Company adopted the dollar-value LIFO method of computing inventory....

On January 1, 2012, the National Furniture Company adopted the dollar-value LIFO method of computing inventory. An internal cost index is used to convert ending inventory to base year. Inventory on January 1 was $200,000. Year-end inventories at year costs and cost indexes for its one inventory pool where as follows:

Year ended Dec. 31 Inventory at Year-end costs Cost Index (relative to base year)
2012 299,000 1.15
2013 300,000 1.20
2014 351,000 1.30

Compute inventory amounts at the end of each year:

Year Base Year Price Index Current Total
1/1/2012
12/31/2012
12/31/2013
12/31/2014
business   accounting   
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year price index base year inventory af Endyear prices prices. Change from prioryear 200,000 1.00 200000. 31112/2011 299000 1

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