#79 Dollar Value LIFO Flashcards by Nick Christensen | Brainscape

Q

Dollar Value LIFO

What is the conversion index?

A

(Ending inventory in current years dollars) / (Ending inventory in base year dollars)

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Q

Dollar Value LIFO

How do you convert ending inventory to base year cost?

A

( 1 / conversion index) x Current Ending Inventory

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Q

What are the steps to Dollar Value LIFO?

A

Step 1: Convert ending inventory to base year cost

Step 2: Determine the increase in inventory at base year cost

Step 3: Convert the increase to current year prices

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Q

Dollar Value LIFO

How do you convert an increase at base year cost to current year prices?

A

Multiply the increase by the conversion index

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