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EXERCISE 8-26


Date

 


Current $

 


Price Index

 


Base-Year $

 

Change from
Prior Year

Dec. 31, 2000

 

$  70,000

 

1.00

 

$70,000

 

Dec. 31, 2001

 

    90,300

 

1.05

 

  86,000

 

$+16,000

Dec. 31, 2002

 

    95,120

 

1.16

 

  82,000

 

      (4,000)

Dec. 31, 2003

 

  105,600

 

1.20

 

  88,000

 

    +6,000

Dec. 31, 2004

 

  100,000

 

1.25

 

  80,000

 

      (8,000)

 

Ending Inventory—Dollar-value LIFO:

 

Dec. 31, 2000

$70,000

 

 

 

 

Dec. 31, 2001

$70,000 @ 1.00 =

$70,000

 

  16,000 @ 1.05 =

  16,800

 

 

$86,800

 

 

 

Dec. 31, 2002

$70,000 @ 1.00 =

$70,000

 

  12,000 @ 1.05 =

  12,600

 

 

$82,600

 

 

 

Dec. 31, 2003

$70,000 @ 1.00 =

$70,000

 

  12,000 @ 1.05 =

12,600

 

    6,000 @ 1.20 =

    7,200

 

 

$89,800

 

 

 

Dec. 31, 2004

$70,000 @ 1.00 =

$70,000

 

  10,000 @ 1.05 =

  10,500

 

 

$80,500