Question - Amber Company has used the dollar-value LIFO technique for the past three years. The company has only one inventory pool. Its beginning inventory for the current year was computed as follows:
Base Period Cost LIFO Index LIFO layer
Base period inv. $1,400,000 1.00 $1,400,000
Year 1 layer 200,000 1.03 206,000
Year 2 layer 400,000 1.05 420,000
The current-year ending inventory at current prices is $2,226,000, and the LIFO index is 1.06 Determine the company's LIFO inventory as of the end of the current year.