Question

Inventory for Tyon is as follows

Current Cost Index

2015 100,000.00 1.00

2016 130,000.00 1.20

2017 150,000.00 1.40

Compute dollar value LIFO for

2015

2016

2017

Answer 1

Solution:

Computation of inventory at base year prices and change from prior year
Year	Inventory at end of year prices	Price index	Inventory at base year prices	Change from Prior Years
2015	$100,000.00	1.00	$100,000	$0
2016	$130,000.00	1.20	$108,333	$8,333
2017	$150,000.00	1.40	$107,143	-$1,190

Computation of dollar value inventory - LIFO
Particulars	Amount
December 31, 2015:
$100,000*$1	$100,000
December 31, 2016:
$100,000*$1	$100,000
$8,333*1.20	$10,000
Inventory at Dec 31, 2016	$110,000
December 31, 2017:
$100,000*$1	$100,000
$7,143*1.20	$8,572
Inventory at Dec 31, 2017	$108,572