Dollar Value LIFO Inventory Method
Steve’s Repair Shop began operations on January 1, 2003. After discussing the matter with his accountant, Steve decided dollar value LIFO should be used for inventory costing. Information concerning the inventory of Steve’s Repair Shop is shown below.
|
|
Inventory at |
|
|
Date |
Year End Prices |
Year End Index |
|
Dec 31, 2003 |
$20,500 |
1.00 |
|
Dec 31, 2004 |
34,000 |
1.18 |
|
Dec 31, 2005 |
55,600 |
1.36 |
|
Dec 31, 2006 |
37,800 |
1.14 |
|
Dec 31, 2007 |
72,250 |
1.72 |
|
Dec 31, 2008 |
53,900 |
2.05 |
Instructions: Compute the inventory value at December 31 of each year under the dollar value
LIFO inventory method, assuming incremental layers are valued using the year end price index.