Question

On January 1, 2021, Avondale Lumber adopted the dollar-value LIFO inventory method. The inventory value for its one inventory pool on this date was $330,000. An internally generated cost index is used to convert ending inventory to base year. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows: Cost Index (Relative to Base Year) 1.04 Year Ended December 31 2021 2022 2023 2024 Inventory Year-End Costs $418, 080 429, 840 482,870 520, 240 1.08 1.09 1.12 Required: Calculate inventory amounts at the end of each year. (Round intermediate calculations and final answers to the nearest whole dollars.) Inventory Layers Converted to Base Year Cost Inventory Layers Converted to Cost Inventory DVL Cost Date Inventory at Year-End Cost Year-End Cost Index Year-End Cost Index Inventory Inventory Layers at Layers at Base Base Year Year Cost Cost = | $ 330,000 Base $ 330,000 = $ 402,000 Base $ 330,000 Inventory Layers Converted to Cost 01/01/2021 12/31/2021 $ $ 330,000 418,080 + = 1.00 1.04 2021 12/31/2022 $ 429,840 = 1.08 = $ 398,000 Base 2021 2022 12/31/2023 [ $ 482,870 + 1.09 = $ 443,000 Base 2021 2022 12/31/2024 $ 520,240 + 1.12 2023 = | $ 464,500 Base 2021 2022 2023 2024

Answer 1

Avandole lumber
Answer in desired format
	IL converted to BY cost				IL converted to cost			EI at DVL cost
Date	Inv. At YE cost	YE cost index	Inv. Layers at BY cost		Inv. At BY cost	YE cost index	Inv. Layers converted to cost
1.1.21	330000	1	330000	Base	330000	1	330000	330000
31.12.2021	418080	1.04	402000	Base	330000	1	330000
				2021	72000	1.04	74880	404880
31.12.2022	429840	1.08	398000	Base	330000	1	330000
			( LIFO liquidation )	2021	68000	1.04	70720
				2022	-	-	0	400720
31.12.2023	482870	1.09	443000	Base	330000	1	330000
				2021	68000	1.04	70720
				2022	-	-	0
				2023	45000	1.09	49050	449770
31.12.2024	520240	1.12	464500	Base	330000	1	330000
				2021	68000	1.04	70720
				2022	-	-	0
				2023	45000	1.09	49050
				2024	21500	1.12	24080	473850