Steve's Repair Shop began operations on January 1, 1997. After discussing the matter with his accountant, Steve decided dollar-value LIFO should be used for inventory costing.

Information concerning the inventory of Steve's Repair Shop is shown below.

Instructions: 

Compute the inventory value at December 31 of each year under the dollar-value LIFO inventory method, assuming incremental layers are valued using the year-end price index.

Transcribed Image Text:

Date Dec. 31, 1997 Dec. 31, 1998 Dec. 31, 1999 Dec. 31, 2000 Dec. 31, 2001 Dec. 31, 2002 Inventory at Year-End Prices $20,500 Year-End Index 1.00 34,000 1.18 55,600 1.36 37,800 1.14 72,250 1.72 53,900 2.05