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on january 1, 2021, badger inc. adopted the dollar-value lifo method. the inventory cost on this date was $100,100. the ending inventory, valued at year-end costs, and the relative cost index for each of the next three years is below: year-end ending inventory at year-end costs cost index 2021 $ 126,315 1.05 2022 143,440 1.10 2023 154,020 1.20 in determining the inventory balance for badger to report in its 12/31/2022 balance sheet:

Respuesta :

The calculation for the inventory balance for Badger to report in its 12/31/2022 balance sheet is:

Beginning Inventory (January 1, 2021) + Purchases (2021-2022) - Cost of Goods Sold (2021-2022) = Ending Inventory (December 31, 2022)

Beginning Inventory (January 1, 2021): $100,100

Purchases (2021-2022): Purchase cost for 2021 x Cost Index 2022 = $126,315 x 1.10 = $138,546

Cost of Goods Sold (2021-2022): Cost of Goods Sold for 2021 x Cost Index 2022 = $100,100 x 1.10 = $110,110

Ending Inventory (December 31, 2022): $138,546 - $110,110 = $28,436

Therefore, the inventory balance for Badger to report in its 12/31/2022 balance sheet is $28,436.

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