Problem:
Eller Company manufactures one product. On December 31, 2006, Eller adopted the dollar-value-value LIFO inventory method. The inventory on that date using the dollar value LIFO inventory method was $250,000. Inventory data are as follows:
Year Inventory at year-end prices price index (base year 2002)
2007 $342,300 1.05
2008 $442,750 1.15
2009 $425,000 1.25
INSTRUCTIONS:
Compute the inventory at December 31, 2007, 2008, 2009, using the dollar-value LIFO method for each year.