Question

On January 1, 2021, the Haskins Company adopted the dollar-value LIFO method for its one inventory pool. The pool's value on this date was $840,000. The 2021 and 2022 ending inventory valued at year-end costs were $884,000 and $954,000, respectively. The appropriate cost indexes are 1.04 for 2021 and 1.06 for 2022. Required: Complete the below table to calculate the inventory value at the end of 2021 and 2022 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.) Inventory DVL Cost Inventory Layers Converted to Base Year Cost Inventory Layers Converted to Cost Inventory Layers at Base Year Inventory Layers Converted to Year-End Inventory Layers at Base Year Cost Inventory at Year-End Year-End Cost Index Date Cost Cost Index Cost Cost 01/01/2021 $ Base 0 12/31/2021 Base 2021 $ 12/31/2022 Base 2021 $ 2022 0

Answer 1

Schedule

Date	Inventory at year end cost	/	Year end cost index	=	Inventory layers at base year cost		Inventory layers at base year cost	*	Year end cost index	=	Inventory layers converted to cost
01/01/2021	840000	/	1	=	840000	Base	840000	*	1	=	840000
12/31/2021	884000	/	1.04	=	850000	Base	840000	*	1	=	840000
						2021	10000	*	1.04	=	10400	850400
12/31/2022	954000	/	1.06	=	900000	Base	840000	*	1	=	840000
						2021	10000	*	1.04	=	10400
						2022	50000	*	1.06	=	53000	903400

Answer 2

900,000-850,000= 50,000 for 2022

850,000-840,000= 10,000 for 2021