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Buckeye Corporation adopted dollar-value LIFO on January 1, 2018, when the inventory value was $500,000 and the cost index was 1.0. On December 31, 2018, the inventory value at year-end costs was $535,000 and the cost index was 1.06. Buckeye would report a LIFO inventory of:a. 504,717
b. 530,000
c. 505,000
d. 533,019

Respuesta :

Answer:

$505,000

Explanation:

Given that

Beginning  Inventory value = $500,000

Cost index = 1

Ending inventory value = $535,000

Cost index = 1.06

So the value of ending inventory by considering the cost index 1.06 is

= $500,000 × 1.06

= $530,000

Now the increase in value is

= $535,000 - $530,000

= $5,000

So, the inventory should be reported at

= $500,000 + $5,000

= $505,000

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