On January 1, 2013, Lucas Distributors Inc. adopted the dollar-value LIFO inventory method for income tax and external financial reporting. However, Lucas continued to use the FIFO inventory method for internal accounting and management purposes. In applying the LIFO method, Lucas uses internal conversion cost indexes and the multiple-pools approach under which substantially identical inventory items are grouped into LIFO inventory pools. The following data were available for Inventory Pool No. 1, which is comprised of Products A and B, for the 2 years following the adoption of LIFO:

Required:
1. Prepare a schedule to compute the internal conversion cost indexes for 2013 and 2014. Round indexes to 2 decimal places
2. Prepare a schedule to compute the inventory amounts at December 31, 2013, and 2014, using the dollar-value LIFO inventory method.

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FIFO Basis per Records Unit Cost Total Cost Inventory, 1/1/13 Product A Product B $30 25 $360,000 200,000 $560,000 12,000 8,000 Inventory, 12/31/13 Product A Product B 17,000 9,000 $35 28 $595,000 252,000 $847,000 Inventory, 12/31/14 Product A Product B 13,000 10,000 $40 32 $520,000 320,000 840,000