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Category > Accounting Posted 26 Sep 2017 My Price 5.00

Bach Co.

Bach Co. adopted the dollar-value LIFO inventory method as of January 1, 2005. A single inventory pool and an internally computed price index are used to compute Bach’s LIFO inventory layers. Information about Bach’s dollar value inventory follows:

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Inventory

Date

at base year cost

at dollar value LIFO

1/1/05

$90,000

$90,000

2005 layer

20,000

30,000

2006 layer

40,000

80,000

What was the price index used to compute Bach’s 2006 dollar value LIFO inventory layer?

  1. 1.09
  2. 1.25
  3. 1.33
  4. 2.00

Answers

Maurice Tutor
(5)
Status NEW Posted 26 Sep 2017 11:09 PM My Price 5.00

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