Q1) Ryan Hunt Company utilizes dollar-value LIFO method of calculating inventory. The external price index is utilized to convert ending inventory to base year. Company started operations on January 1, 2006 with the inventory of $150,000. Year end inventories at year-end costs and related cost indices for its one inventory pool were given below:
|
Year-ended 31-Dec
|
Inventory at Year-end Costs
|
Cost Index (Relative to Base Year)
|
|
2006
|
$200,000
|
1.08
|
|
2007
|
245,700
|
1.17
|
|
2008
|
235,980
|
1.14
|
|
2009
|
228,800
|
1.1
|
Compute carrying value of inventory on each year-end balance sheet.