Quicksilver adopted LIFO in January 1, 2010, when the inventory had a FIFO cost of $180,000 ($10 per unit). At the end of 2010, inventory consisted of $18,750 units at $12 per unit, and the ending inventory for 2011 consisted of 20,000 units at $15 per unit.
A. Calculate the cost index to be used for 2010 and 2011 using the link-chain method.
B. Compute the ending inventory for 2010 and 2011 using dollar-value LIFO.