CWB Teleconcepts, Inc. manufactures and distributes three models of handheld devices: the Flame, the Globe, and the HD3. CWB uses the dollar-value LIFO method. Information for 2022, 2023, and 2024 is presented in the following table.

The cumulative price indices for 2022, 2023, and 2024, respectively are 1.00, 1.056, and 1.1155.

Required

a. Compute the company’s ending inventory using dollar-value LIFO for each year. Treat the three models as one group. Round to the nearest dollar.

b. Prepare the journal entry required to adjust the LIFO reserve for each year.

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Description Inventory Flame Globe HD3 Base Year: 2022 Units 5,000 6,000 3,000 Total FIFO Cost $450,000 660,000 450,000 Units 7,000 5,000 5,000 2023 Total FIFO Cost $658,000 580,000 800,000 Units 4,000 3,000 1,000 2024 Total FIFO Cost $392,000 375,000 170,000