[futureCPA]

Does anyone have a better way of explaining dollar-value LIFO than Becker? I’m really not understanding it at all. Thanks in advance.

Walt Co. adopted the U.S. GAAP dollar-value LIFO inventory method as of January 1, when its inventory was valued at $500,000. Walt’s entire inventory constitutes a single pool. Using a relevant price index of 1.10, Walt determined that its December 31 inventory was $577,500 at current year cost, and $525,000 at base year cost. What was Walt’s dollar-value LIFO inventory at December 31?

a. $577,500

b. $527,500 ANSWER

c. $525,000

d. $552,500

REG - 70, 72, retake at end of Nov.
BEC - PASS
FAR - 10/20/2015
AUD - PASS