Compute the inventory at december 31 2016 2017 and 2018

Question

Assignment

Joan Company manufactures one product. On December 31, 2016, Joan adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was $190,000. Inventory data are as follows:

             
Year      Inventory at year-end prices       Price index (base year 2016)
2016            $255,000                                           1.05
2017            370,000                                             1.15
2018            390,500                                             1.25

Compute the inventory at December 31, 2016, 2017, and 2018, using the dollar-value LIFO method for each year.