Use the following information for questions 125 through 127.
Gross Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2013. Its inventory at that date was $550,000 and the relevant price index was 100. Information regarding inventory for subsequent years is as follows:
-What is the cost of the ending inventory at December 31, 2015 under dollar-value LIFO?
A) $580,000.
B) $578,500.
C) $582,100.
D) $600,000.

Question

Use the following information for questions 125 through 127.
Gross Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2013. Its inventory at that date was $550,000 and the relevant price index was 100. Information regarding inventory for subsequent years is as follows: 
-What is the cost of the ending inventory at December 31, 2015 under dollar-value LIFO?
A) $580,000. 
B) $578,500. 
C) $582,100. 
D) $600,000.

Quizplus · Accepted Answer

The cost of the ending inventory under dollar-value LIFO is calculated by adjusting the inventory for inflation using the LIFO index. The correct calculation results in $582,100.

Use the Following Information for Questions 125 Through 127