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on january 1, 20x2, random creations adopts the dollar value lifo method for all inventory. on this date, random creations creates inventory pools and uses an internal cost index to convert ending inventory to base year. inventory on january 1, 20x2 for one of these pools is $200,000. below is informa

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The DV Lifo as on 31 December 2014, the DV lifo means "Dollar Value Last in first out".

Dollar value Lifo inventories is a method of determining cost by using base-year costs expressed in dollars.

Ending inventory at base year prices = $740000 - $700000 = $40000

Increase in valuation = 40000*1.05 = 42000

DVL inventory at Dollar value Lifo inventory

= 700000 + 42000 = $ 742000

The acronym for LIFO is "Last-In, First-Out". It is a method for calculating cost of goods sold that supports cost flow hypotheses. The LIFO method is based on the notion that the most recent things added to a company's inventory have already been sold. The computation was done using the purchase prices of these current products.

Hence, the problem is solved.

To know more about lifo please check the following link

https://brainly.com/question/29568457

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