On January 1 2018 the Haskins Company adopted the dollarvalu

On January 1, 2018, the Haskins Company adopted the dollar-value LIFO method for its one inventory pool. The pool’s value on this date was $770,000. The 2018 and 2019 ending inventory valued at year-end costs were $806,000 and $882,000, respectively. The appropriate cost indexes are 1.04 for 2018 and 1.05 for 2019.

Required:
Complete the below table to calculate the inventory value at the end of 2018 and 2019 using the dollar-value LIFO method

Solution

Calculate inventory value at the end of 2018 and 2019 under dollar value LIFO method :

2018 Inventory value = (806000-770000)*1.04+770000 = $807440

2019 Inventory value = (882000-806000)*1.05+807440 = $887240