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Home/ Questions/On January 1, 2021, Avondale Lumber adopted the dollar-value LIFO inventory method. The inventory value for its one inv...
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Asked: April 13, 20222022-04-13T13:03:33+00:00 2022-04-13T13:03:33+00:00In: Accounting

On January 1, 2021, Avondale Lumber adopted the dollar-value LIFO inventory method. The inventory value for its one inv…

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On January 1, 2021, Avondale Lumber adopted the dollar-value LIFO inventory method. The inventory value for its one inventory pool on this date was $305.000. An internally generated cost index is used to convert ending inventory to base year. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows:

Year Ended December 31

Inventory Year-Ended Costs Cost Index (Relative to Base Year)
2021 $ 390,660 1.02
2022 402,800 1.06
2023 457,960 1.07
2024 491,700 1.10
Required:
Calculate inventory amounts at the end of each year. (Round Intermedlate calculations and final answers to the nearest whole dollars.) 

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♦ Relevant knowledge

The valuation of inventory is crucial for any business since inventory constitutes a substantial portion of assets, therefore it is the duty of the financial managers to select the right method to find out the financial condition of the company that will assist the internal and external stakeholders in making a decision regarding the investment decision in the particular company .

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    Linda Rodriguez
    2022-04-13T13:03:36+00:00Added an answer on April 13, 2022 at 1:03 pm

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