Dollar Value LIFO The Olson Company adopted the dollar value LIFO method for inventory valuation at the beginning of 2006. The following information about the inventory at the end of each year is available from the company records:
|
Year |
Current Costs |
Index |
|
2005 |
$50,000 |
100 |
|
2006 |
60,000 |
108 |
|
2007 |
70,000 |
115 |
|
2008 |
73,000 |
125 |
|
2009 |
78,000 |
135 |
Required
1. Calculate the dollar value LIFO inventory at the end of each year.
2. Prepare the appropriate disclosures for the year 2009 annual report if the company uses current cost internally and LIFO for financial reporting. Why would the company use current cost internally?