Question

On January 1, 2018, the Haskins Company adopted the dollar-value LIFO method for its one inventory pool. The pool’s value on this date was $790,000. The 2018 and 2019 ending inventory valued at year-end costs were $832,000 and $918,000, respectively. The appropriate cost indexes are 1.04 for 2018 and 1.08 for 2019.

Required:
Complete the below table to calculate the inventory value at the end of 2018 and 2019 using the dollar-value LIFO method. (Round "Year end cost index" to 2 decimal places. Round other final answer values to the nearest whole dollars.)

Answer 1

Inventory at base year Inventory value at Dollar value $790,000 ($790,0001($10,000*$1.04) Inventory at Year year end price Price Index Price 01/01/2018 $790,000 1 $790,000/1 - $790,000 0 31/12/2018 $832,000 1.04 | $832,000/ 1.04 = $800,000 | $800,000-$790,000-$10,000 = $800,400 $790,000 1)+($10,000 $1.04)+ 31/12/2019 $918,000 Therefore Inventory value at the end of 2018 & 2019 are $800,400 & $854,400 respectively