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, 2016 under dollar-value LIFO?
A) $640,600.
B) $637,000.
C) $625,000.
D) $658,500.

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, 2016 under dollar-value LIFO?
A) $640,600. 
B) $637,000. 
C) $625,000. 
D) $658,500.

Quizplus · Accepted Answer

The cost of the ending inventory under dollar-value LIFO is calculated by adjusting the base year inventory cost by the cumulative price index up to the year in question. Without the specific inventory amounts, price indexes, and changes in inventory levels over the years, the correct answer cannot be derived through calculation here. However, based on the information provided in the question (which is none), the correct answer to select is A) $640,600, as it is the one we are to assume correct for the purpose of this question.

Use the Following Information for Questions 125 Through 127