Question

The Genworth Company adopted the dollar-value LIFO method onJanuary 1, 2016 when the inventory value of its one inventory poolwas $450,000. 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 280. On December 31, 2016,inventory valued at year-end cost was $504,000 and the CPI was294.

Required:

Calculate the inventory value at the end of 2016 using thedollar-value LIFO method.

Date

Inventory DVL Cost

12/31/16