On January 1, 2024, a company adopted the dollar-value LIFO method. The inventory cost on this date was $100,000. The ending inventory, valued at year-end costs, and the relative cost index for each of the next three years is below: Year-End Ending Inventory at Year-End Costs Cost Index 2024 $ 126,000 1.05 2025 143,000 1.10 2026 153,600 1.20 What inventory balance would the company report on its 12/31/2026 balance sheet?
On January 1, 2024, a company adopted the dollar-value LIFO method. The inventory cost on this date was $100,000. The ending inventory, valued at year-end costs, and the relative cost index for each of the next three years is below: Year-End Ending Inventory at Year-End Costs Cost Index 2024 $ 126,000 1.05 2025 143,000 1.10 2026 153,600 1.20 What inventory balance would the company report on its 12/31/2026 balance sheet?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 14RE: On January 1 of Year 1, Dorso Company adopted the dollar-value LIFO method of inventory costing....
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On January 1, 2024, a company adopted the dollar-value LIFO method. The inventory cost on this date was $100,000. The ending inventory, valued at year-end costs, and the relative cost index for each of the next three years is below: Year-End Ending Inventory at Year-End Costs Cost Index 2024 $ 126,000 1.05 2025 143,000 1.10 2026 153,600 1.20 What inventory balance would the company report on its 12/31/2026
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