dollar_value_LIFO_summary

dollar_value_LIFO_summary - 30,000 x 1.05 = 31,500 5,000 x...

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Dollar-Value LIFO (DVL) – Summary Step 1 Step 2 (a) Step 3 (b) Step 4 (c) Date Ending inventory at year-end costs Ending inventory at base-year cost Inventory layers at base-years cost Inventory layers converted to acquisition year cost Ending inventory at DVL cost Dec. 31, 2006 556,500 556,500/1.05 = 530,000 500,000 base 30,000 (2006) 500,000 x 1.00 = 500,000 30,000 x 1.05 = 31,500 531,500 531,500 Dec. 31, 2007 596,200 596,200/1.10 = 542,000 500,000 base 30,000 (2006) 12,000 (2007) 500,000 x 1.00 = 500,000 30,000 x 1.05 = 31,500 12,000 x 1.10 = 13,200 544,700 544,700 Dec. 31, 2008 615,250 615,250/1.15 = 535,000 500,000 base 30,000 (2006) 5,000 (2007) 500,000 x 1.00 = 500,000
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Unformatted text preview: 30,000 x 1.05 = 31,500 5,000 x 1.10 = 5,500 537,000 537,000 Dec. 31, 2009 720,000 720,000/1.25 = 576,000 500,000 base 30,000 (2006) 5,000 (2007) 41,000 (2009) 500,000 x 1.00 = 500,000 30,000 x 1.05 = 31,500 5,000 x 1.10 = 5,500 41,000 x 1.25 = 51,250 588,250 588,250 Notes: (a) Ending inventory at base-year cost = Ending inventory at year end costs divided by cost index. (b) Inventory layers at base-years cost = Ending inventory at base-year cost minus beginning inventory at base year cost. (c) New inventory layer added during the year is multiplied by cost index. Then re-inflated layer is added to beginning inventory....
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