Hock Brothers uses the simpliﬁed dollar-value LIFO method to account for its inventory. Ending inventory at actual prices in 2012 and 2013 was $80,000 and $120,000, respectively. fte Consumer Price Index for 2012 and 2013 was 102% and 107%, respectively. fte value of Hock Brothers' ending inventory in 2013 is:

Question

Quizplus · Accepted Answer

$116,079
2013 ending inventory at assumed base year prices: $120,000 × 1.02/1.07 = $114,393
Increment at base price: $114,393 - $80,000 = $34,393 Increment at 2013 base price: $34,393 × 1.07/1.02 = $36,079 Ending inventory value: $80,000 + $36,079 = $116,079

Hock Brothers Uses the Simpliﬁed Dollar-Value LIFO Method to Account