Question

Sunland Company manufactures one product. On December 31, 2019, Sunland adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was $990,000. Inventory data are as follows:

Year		Inventory at year-end prices			Price index (base year 2019)
2020		$1,253,700			1.05
2021		1,840,000			1.15
2022		1,950,000			1.25

Compute the inventory at December 31, 2020, 2021, and 2022, using the dollar-value LIFO method for each year.

Inventory at December 31, 2020		$
Inventory at December 31, 2021		$
Inventory at December 31, 2022		$

Answer 1

Dollar - Value LIFO Method Date Dec 31st, 2019 Dec 31st, 2020 Dec 31st,2021 Dec 31st,2022 Inventory at end of the year 990000 1253700 1840000 1950000 Price index 1.00 1.05 1.15 1.25 Inventory Change at from base year prior year 990000 990000 11940001 204000 1600000 406000 1560000 40000| Dec 31st, 2019 Closing inventory value = 990000 X 1.00 = 990000 Dec 31st,2020 Closing inventory value = 990000 X 1.00 = 990000 = 204000 X 1.05 = 214200 Total Inventory = 1204200 Dec 31st,2021 Closing inventory value = 990000 X 1.00 = 990000 = 204000 X 1.05 = 214200 = 406000 X 1.15 = 466900 Total Inventory = 1671100 Dec 31st,2022 Closing inventory value = 990000 X 1.00 = 990000 = 204000 X 1.05 = 214200 = 366000 X 1.15 = 420900 Total Inventory = 1625100