Amidei Company adopts dollar-value LIFO inventory on 12/31/07 when its inventory at current price is $45,000. The inventory value on 12/31/08 at current 2008 prices is $65,000. If prices increased by 30% during 2008, what is the dollar-value LIFO inventory at 12/31/08?
A) $65,000
B) $58,000
C) $51,500
D) $48,700

Question

Quizplus · Accepted Answer

$65,000 - ($65,000 ÷ 1.30) = 15,000
[($50,000 - $45,000) × 1.30] + $45,000 = $51,500.

Amidei Company Adopts Dollar-Value LIFO Inventory on 12/31/07 When Its