Explore BrainMass

Explore BrainMass

    Dollar value LIFO calculations for Dyer Co

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Dyer Co. adopted the dollar-value LIFO inventory method on December 31, 2004. Dyer's entire inventory constitutes a single pool. On December 31, 2004, the inventory was $240,000 under the dollar-value LIFO method. Inventory data for 2005 are as follows:

    12/31/05 inventory at year-end prices ----------------------- $330,000
    Relevant price index at year-end (base year 2004) ---------------- 110

    Using dollar value LIFO, Dyer's inventory at December 31, 2005 is
    a. $264,000
    b. $306,000
    c. $300,000
    d. $330,000

    © BrainMass Inc. brainmass.com June 3, 2020, 9:32 pm ad1c9bdddf
    https://brainmass.com/business/inventory/dollar-value-lifo-calculations-dyer-co-187022

    Solution Preview

    12/31/05 inventory at 2004 prices =$330,000/1.10=$300,000
    Inventory ...

    Solution Summary

    This solution answers a conceptual question on Dollar Value LIFO.

    $2.19

    ADVERTISEMENT