[Jahazield]

Bach CO adopted the dollar value LIFO inventory method on jan 01,2000. A single inventory pool and an internally computed price index are used to compute Bach’s LIFO onventory layers. Information about Bach’s dollar value inventory follows:

Inventory

Date At baseyear cost At current year cost

1/1/00 90000 90000

2000 layer & nbsp; 20000 30000

2001 layer & nbsp; 40000 80000

what was the price index used to compute Bach’s 2001 dollar value LIFO inventory layer?

a-1.09

b-1.25

c-1.33

d-2.00

The answer is D, but according to Becker it’s supposed to be 1.33…

Confused, help me please.

[hashbrown]

Are you sure you are using current year cost?

[Jahazield]

@hashbrown

Yeah…read in some forum that if they give you one of the layers in Lifo then you're supposed to divide only the layers. Then you get the answer of 2. But in this case they give you base and current, that gives me 1.33…

Pretty confused about this. Maybe it's just a mistake in the question?

[okcpa2015]

@Jahazield, but no means I'm I saying you don't need to study DVLIFO, but from my experience you just need a general understanding of the topic for the exam.

If you get a DVLIFO question on the really exam, go ahead and crack a smile, because you are probably doing pretty well on the rest of the questions.

FAR - 91
REG - 88
AUD - 98
BEC - 88

[Author]

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