AJ Company had January 1 inventory of $ 100,000 when it adopted dollar-value LIFO. During the year, purchases were $600,000 and sales were $1,000,000. December 31 inventory at year-end prices was $143,360, and the price index was 112.
-What is AJ Company's ending inventory?
A) $100,000
B) $128,000
C) $131,360
D) $143,360

Question

Quizplus · Accepted Answer

$143,360 ÷ 1.12 = $128,000 - $100,000 = $28,000.
$100,000 + ($28,000 × 1.12) = $131,360.

AJ Company Had January 1 Inventory of $ 100,000 When