On January 1, 2013, the Taylor Company adopted the dollar-value LIFO method. The inventory value for its one inventory pool on this date was $310,000. Inventory data for 2013 through 2015 are as follows:
| Date | Ending Inventory at Year-End Costs | Cost Index |
| 12/31/13 | $339,900 | 1.03 |
| 12/31/14 | $382,950 | 1.11 |
| 12/31/15 | $398,650 | 1.19 |
| Required: | ||||||||||
Calculate Taylor’s ending inventory for 2013, 2014, and 2015.
|
ulation of Taylor’s ending inventory for 2013, 2014, and 2015.are as follow
| Year | Value | |
| 12/31/13 | 330,000 | |
| 12/31/14 | 345,000 | |
| 12/31/15 | 335.000 |
Cost 1/1/13 $410,000 = $310,000 $310,000 (base) $310,000 × 1.00 = $3100,000 $310,000 1.00
12/31/13 $339,900 = $330,000 $310,000 (base) $310,000 × 1.00 = $310,000 1.03 20,000 (2013) 20,000 × 1.03 = 20,600= $330,000
12/31/14 $382,950 = $345,000 $310,000 (base) $310,000 × 1.00 = $310,000 1.10 20,000 (2013) 20,000 × 1.03 = 20,600 15,000 (2014) 15,000 × 1.10 = 16,500 =$345,000
12/31/15 $398,650 = $335,000 $310,000 (base) $310,000 × 1.00 = $310,000 1.23 20,000 (2013) 20,000 × 1.03 = 20,600 5,000 (2014) 5,000 × 1.10 = 5,500 $335,000
