Question

Web World began using dollar-value LIFO for costing its inventory last year. The base year layer consists of $600,000. Assuming the current inventory at end of year prices equals $828,000 and the index for the current year is 1.10, what is the ending inventory using dollar-value LIFO?

Answer 1

768,000

Step-by-step explanation:

Year 1: 600,000

Year 2: 828,000/1.10=752,727

(600,000+ x)=752,727

x=152,727

152,727*1.10=168,000+600,000=768,000