Essay
The Genworth Company adopted the dollar-value LIFO method on January 1, 2018 when the inventory value of its one inventory pool was $450,000. The company decided to use an external index, the Consumer Price Index (CPI), to adjust for changes in the cost level. On January 1, 2018, the CPI was 280. On December 31, 2018, inventory valued at year-end cost was $504,000 and the CPI was 294.
Required:
Calculate the inventory value at the end of 2018 using the dollar-value LIFO method.
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