{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

dollar_value_LIFO_summary

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

This preview shows page 1. Sign up to view the full content.

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, 2010 556,500 556,500/1.05 = 530,000 500,000 base 30,000 (2010) 500,000 x 1.00 = 500,000 30,000 x 1.05 = 31,500 531,500 531,500 Dec. 31, 2011 596,200 596,200/1.10 = 542,000 500,000 base 30,000 (2010) 12,000 (2011) 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, 2012 615,250 615,250/1.15 = 535,000 500,000 base 30,000 (2010) 5,000 (2011) 500,000 x 1.00 = 500,000
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 30,000 x 1.05 = 31,500 5,000 x 1.10 = 5,500 537,000 537,000 Dec. 31, 2013 720,000 720,000/1.25 = 576,000 500,000 base 30,000 (2010) 5,000 (2011) 41,000 (2013) 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....
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online