On December 3 1 , 2002, Lelegren Architectural Supply took a statistical inventory of items for the sample of its inventory The inventory revealed the following information.

Instructions:
1 . Compute the year-end price index for Lelegren Architectural Supply at December 31, 2001, and 2002. The prices at December 31, 2000, are the base-year prices.
2. Compute the LIFO inventory at December 3 1 , 2002. Assume the December 2000 LIFO inventory was \($623,000.\) Incremental layers are valued using the year-end price index.

Transcribed Image Text:

Dec. 31, 2000 Dec. 31, 2001 Quantity Cost Quantity Cost Quantity Dec. 31, 2002 Cost Pencil leads. Masking tape Pink erasers 2,000 $ 5.00 2,000 $ 5.50 2,200 $ 5.40 1,000 3.00 1,000 3.30 800 3.50 5,000 4.00 5,000 4.40 5,500 4.75 Vellum paper 3,000 12.00 3,000 13.20 3,200 14.00 Sketch pads. 6,000 8.00 6,000 8.80 5,000 9.00 Triangles 1,000 8.00 1,000 8.80 1,000 8.50 Cost of total inventory at year-end prices $750,000 $950,000 $1,020,000