Question

Iduna Company has adopted the dollar-value LIFO method in 2018. At December 31, 2018, the ending inventory at dollar-value LIFO is $103,000, with a price index of 1.00. At December 31, 2019, the ending inventory using year-end prices is $125,000. The price index is 1.3 in 2019. Round all dollar amounts to the nearest dollar. What is the ending inventory using dollar-value LIFO at December 31, 2019

Answer 1

$96,154

Step-by-step explanation:

Calculation to determine the ending inventory using dollar-value LIFO at December 31, 2019

First step is to calculate the Ending Inventory

Ending Inventory= $125,000/1.3

Ending Inventory =$96,154

Now let calculate the ending inventory using dollar-value LIFO at December 31, 2019

December 31, 2019 Ending inventory using dollar-value LIFO=$96,154* $1

December 31, 2019 Ending inventory using dollar-value LIFO= $96,154

Therefore the ending inventory using dollar-value LIFO at December 31, 2019 will be $96,154