Describe the dollar-value lifo method


Dollar-value LIFO

Response to the following problem:

On January 1, 2016, the Haskins Company adopted the dollar-value LIFO method for its one inventory pool. The pool's value on this date was $660,000. The 2016 and 2017 ending inventory valued at year-end costs were $690,000 and $760,000, respectively. The appropriate cost indexes are 1.04 for 2016 and 1.08 for 2017.

Required:

Calculate the inventory value at the end of 2016 and 2017 using the dollar-value LIFO method.

 

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Cost Accounting: Describe the dollar-value lifo method
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