Dollar Value LIFO Examples

Dollar Value LIFO Examples - Dollar Value LIFO Example 1...

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Dollar Value LIFO Example 1 (Company A) Company A adopted Dollar Value LIFO on January 1, 2006. Date Ending inventory at current year cost Cost Index 1/1/2006 800,000 $ 1.00 Base year 12/31/2006 860,000 $ 1.06 12/31/2007 950,000 $ 1.14 12/31/2008 980,000 $ 1.21 12/31/2009 1,050,000 $ 1.27 Date Ending inventory at current year cost Conversion factor (Current --> Base) Ending inventory at base year cost Increase (Decrease) Inventory layers Year Conversion factor (Base --> Added year) Inventory layers at added year cost Ending inventory (Dollar Value LIFO) 1/1/2006 800,000 $ 1.00/1.00 800,000 $ 800,000 $ Base Layer 1.00 800,000 $ 800,000 $ 12/31/2006 860,000 $ 1.00/1.06 811,321 $ 11,321 $ 800,000 $ Base Layer 1.00 800,000 $ 11,321 $ 2006 1.06 12,000 $ 812,000 $ 12/31/2007 950,000 $ 1.00/1.14 833,333 $ 22,013 $ 800,000 $ Base Layer 1.00 800,000 $ 11,321 $ 2006 1.06 12,000 $ 22,013 $ 2007 1.14 25,094 $ 837,094 $ 12/31/2008 980,000 $ 1.00/1.21 809,917 $ (23,416) $ 800,000 $ Base Layer 1.00 800,000
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Dollar Value LIFO Examples - Dollar Value LIFO Example 1...

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