Question

Dalton Sporting Goods adopted the dollar-value LIFO method for inventory valuation in 2016. Use the information below to determine the cumulative cost of the ending inventory at December 31, 2019 under dollar-value LIFO (in other words, what would be the inventory balance on Dalton’s Balance Sheet at 12.31.19). Inventory at Current Date Current Prices Price Index December 31, 2016 $150,000 100 December 31, 2017 $189,000 105 December 31, 2018 270,000 120 December 31, 2019 260,000 130

What is the cumulative ending inventory balance at 12.31.19? $______________________

Answer 1

year	value	index		base price	change from prior year
2016	$1,50,000.00	100	1	$1,50,000.00	0
2017	$1,89,000.00	105	1.05	$1,80,000.00	$30,000.00
2018	$2,70,000.00	120	1.2	$2,25,000.00	$45,000.00
2019	$2,60,000.00	130	1.3	$2,00,000.00	($25,000.00)
	year	value	index	closing stock value
	2016	$1,50,000.00	1	$1,50,000.00
	2017
		$1,50,000.00	1	$1,50,000.00
		$30,000.00	1.05	$31,500.00
		total value		$1,81,500.00
	2018
		$1,50,000.00	1	$1,50,000.00
		75000	1.05	$78,750.00
		total value		$2,28,750.00
	2019
		$1,50,000.00	1	$1,50,000.00
		$50,000.00	1.05	$52,500.00
		total value		$2,02,500.00