Web World Began Using Dollar-Value LIFO for Costing Its Inventory

question 119

Multiple Choice

Web World began using dollar-value LIFO for costing its inventory last year. The base year layer consists of $400,000. Assuming the current inventory at end of year prices equals $552,000 and the index for the current year is 1.10, what is the ending inventory using dollar-value LIFO?

• A) $552,000.
• B) $512,000.
• C) $501,818.
• D) $607,200.

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Definitions:

Mediator

An entity or substance that plays a role in the process leading to a specific result or outcome, often used in the context of scientific research or conflict resolution.

Incentive

A thing that motivates or encourages someone to do something or acts as a reward for greater effort.

Motivate Behavior

The driving force behind actions, propelled by desires and needs that influence behavior patterns.

Increase in Drive

An escalation in a motivational or biological imperative that compels individuals towards certain actions or behaviors.