Respuesta :
Answer:
$647000
Explanation:
Given that
Inventory at end of 2018 = 500,000
2019 cost = year end cost ÷ cost index
= 672000 ÷ 1.05
= 640000
Therefore,
Inventory end of 2018
= 640000 - 500000
= 140000
End of 2019 at dollar value inventory cost
= 140000 × 1.05 + 500000
= 147000 + 500000
= $647000
Answer:
$647000
Explanation:
The dollar-value LIFO method is used to calculate the ending inventory that is made on the basis of yearly changes to the dollar value of inventory after making some changes caused by inflation.
Given that,
Cost index= 1.05
2019 end cost= $627000
End of 2019 inventory = $627000/1.05
= $640000
The increase in the end of 2018 at the end of 2018 dollars is:
$640000-$500000
=$140,000
Therefore, the inventory at the end of 2019 at dollar-value LIFO cost is:
$140000 × 1.05 - $500000
= $647000