Question

Carswell Electronics adopted the dollar-value LIFO method onJanuary 1, 2016, when the inventory value of its one inventory poolwas $870,000. The company decided to use an external index, theConsumer Price Index (CPI), to adjust for changes in the costlevel. On January 1, 2016, the CPI was 230. On December 31, 2016,inventory valued at year-end cost was $1,045,000 and the CPI was253. Required: Calculate the inventory value at the end of 2016using the dollar-value LIFO method.

 

Inventory Layers Converted toBase Year Cost

 

Inventory Layers Converted toCost

Ending Inventory DVL Cost

 

Date

Inventory at Year-End Cost

Year-End Cost Index

Inventory Layers at Bse Year Cost

 

Inventory Layers at Base Year Cost

Year End Cost Index

Inventory Layers Converted to Cost

 

 

 

1/1/2016

?

?

?

Base

?

?

?

?

 

 

12/31/2016

?

?

?

Base

?

?

?

?

 

 

 

 

 

 

2016

?

?

?

?