<p>Hey guys, well in my intermediate accounting class, I’m kind of having trouble understanding the Dollar-Value LIFO method of valuing inventory. I mean sure, I know how to do the problems, and calculate ending inventory using this method, but I just don’t understand the theory behind it. I don’t understand what the cost indexes mean and all of that stuff</p>
<p>I was wondering if someone here who understands this concept could explain it to me in as simple terms as possible. Just act like your explaining it to someone who doesn’t have a huge knowledge of accounting, but knows some stuff, and certainly knows all the other methods for valuing inventory (LIFO, FIFO, average). Please explain it in as simple language as you can</p>
<p>If anybody were to help me on this, it would be greatly appreciated. Thanks!</p>