Question

Retail Corp adopted the dollar-value LIFO method on 1-1-2015.

(Divide; separate into layers; multiply each layer by own index)

4

Date	Year-end inventory at year-end cost	Cost index at date indicated	Ending inventory at base year cost	separate into layers and multiply by own index	Sum recomputed layers
1-1-15	$100,000	1.00
12-31-15	$220,000	1.10
12-31-16	$225.000	1.20
12-31-17	$240,000	1.30
12-31-18	$300,000	1.35

Answer 1

Date	Year-end inventory at year-end cost	Cost index at date indicated	Ending inventory at base year cost	separate into layers and multiply by own index	Sum recomputed layers
1/1/2015	$    100,000.00	1.00	100,000.00	=$100,000*1.00	100,000.00
12/31/2015	$    220,000.00	1.10	200,000.00	=$100,000*1.00 '=$100,000*1.10	$100,000.00 $110,000.00 =$210,000.00
12/31/2016	$    225,000.00	1.20	187,500.00	=$100,000*1.00 =$87,500*1.10	$100000.00 $96250.00 =$196,250.00
12/31/2017	$    240,000.00	1.30	184,615.00	=$100,000*1.00 =$84,615*1.20	$100,000.00 $101,538.00 =201,538.00
12/31/2018	$    300,000.00	1.35	222,222.00	=$100,000*1.00 =$122,222*1.30	$100,000.00 $158,889.00 =258,889.00