Question

General Products Co. uses doGeneral Products Co. uses dollar-value LIFO to measure its inventory. The following data is available for the current operating year ended December 31. llar-value LIFO to measure its inventory. The following data is available for the current operating year ended December 31.

	Base-Year Cost	Current-Year Cost
January 1	$75,000,000	$75,000,000
Added layer	20,000,000	39,000,000
December 31	$95,000,000	$114,000,000

Based on the above, what is the company's ending inventory at December 31 using the dollar-value LIFO method?

a. $91,666,667

b. $95,000,000

c. $99,000,000

d. $114,000,000

Answer 1

Please finf below answer :

Option c : $99,000,000

Year	Inventory at Base Year Price	Inventory at Base Year Price	Price Index	Inventory Change from prior Years
January	$                      7,500,000.00	$           7,500,000.00	1.00	$                                               -
December	$                      9,500,000.00	$         11,400,000.00	1.20	$                          2,000,000.00 ($95,00,000-$75,00,000)
Dollar value inventory		$ 99,000,000*
Dollar Value Inventory = $75,000,000*1(Priceindex)+$2,000,000*1.20(Price Index)
December end inventory Value	Inventory at Base Year Price	Inventory at Base Year Price
January	$                      7,500,000.00	$           7,500,000.00
Added Layer	$                      2,000,000.00	$           3,900,000.00
December	$                      9,500,000.00	$         11,400,000.00