Kingston Company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1, 2018, with an inventory of $265,000.

Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows:

Year Ended Ending Inventory Cost Index

December 31 at Year-End Costs (Relative to Base Year)

2018 $ 336,600 1.02

2019 427,350 1.11

2020 405,000 1.08

2021 395,200 1.04

Calculate inventory amounts at the end of each year.

Kingston Company

Jan 1 2018 Inventory $265,000

A.

Dec 31 2018 Inventory $336,600 1.02

this reflects a 2% Cost Index over base Period:

Inventory costs therefore is $336,600 divided by 102% = $330,000

B.

Dec 31 2019 427,350 1.11

this reflects a 11% Cost Index over base Period:

Inventory costs therefore is $427,350 divided by 111% = $385,000

C.

Dec 31 2020 405,000 1.08

this reflects a 8% Cost Index over base Period:

Inventory costs therefore is $405,000 divided by 108% = $375,000

Dec 31 2021 395,200 1.04

this reflects a 4% Cost Index over base Period:

Inventory costs therefore is $395,200 divided by 104% = $380,000

answer; private store;

answersecondary succession;