Bond Company adopted the dollar-value LIFO inventory method on January 1, 2009. In applying the LIFO method, Bond uses internal cost indexes and the multiple-pools approach. The following data were available for Inventory Pool No. 3 for the two years following the adoption of LIFO: Under the dollar-value LIFO method the inventory at December 31, 2010, should be
A)$357,600.
B)$350,000.
C)$351,600.
D)None of these.

Question

Quizplus · Accepted Answer

The dollar-value LIFO method requires adjusting the inventory for inflation using cost indexes. The inventory at December 31, 2010, should be calculated by adjusting the base year inventory with the cost index for 2010, resulting in $357,600.

Bond Company Adopted the Dollar-Value LIFO Inventory Method on January