The Ryan Hunt Company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1, 2006 with an inventory of $150,000. Year end inventories at year-end costs and related cost indices for its one inventory pool were as follows:
|
Year-ended 31-Dec
|
Inventory at Year-end Costs
|
Cost Index (Relative to Base Year)
|
|
2006
|
$200,000
|
1.08
|
|
2007
|
245,700
|
1.17
|
|
2008
|
235,980
|
1.14
|
|
2009
|
228,800
|
1.1
|
Required: Calculate the carrying value of inventory on each year-end balance sheet.