Dollar Value LIFO Retail Inventory Method
In 2005, Van Hover Inc. adopted the dollar value LIFO retail inventory method. The January 1, 2005, price index was 1.00. The following data are available for the 4 year period ending December 31, 2008.
|
|
Cost |
Retail |
|
2005: |
|
|
|
Inventory, January 1 |
$148,050 |
$235,000 |
|
Purchases |
393,700 |
635,000 |
|
Sales |
|
590,000 |
|
Year end price index |
|
1.12 |
|
2006: |
|
|
|
Purchases |
$363,000 |
$550,000 |
|
Sales |
|
579,170 |
|
Year end price index |
|
1.08 |
|
2007: |
|
|
|
Purchases |
$377,000 |
$650,000 |
|
Sales |
|
641,955 |
|
Year end price index |
|
1.09 |
|
2008: |
|
|
|
Purchases |
$504,000 |
$800,000 |
|
Sales |
|
762,500 |
|
Year end price index |
|
1.12 |
Instructions: Calculate the inventories to be reported at the end of 2005, 2006, 2007, and 2008. Incremental layers are costed at end of year prices.