1) On January 1, 2021, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $100,000. The ending inventory, valued at year-end costs, and the relative cost index for each of the next three years is below:

Year-end	Ending inventory at year-end costs				Cost Index
2021	$	126,000				1.05
2022		143,000				1.10
2023		153,600				1.20

What inventory balance would Badger report on its 12/31/2023 balance sheet?

A) $128,000.

B) $129,800.

C) $153,600.

D) None of these answer choices are correct.

2) Data related to the inventories of Alpine Ski Equipment and Supplies is presented below:

	Skis						Boots						Apparel						Supplies
Selling price	$	180,000				$		140,000				$		120,000				$		60,000
Cost		128,000						133,000						90,000						45,000
Replacement cost		120,000						130,000						110,000						41,000
Sales commission		10	%					10	%					10	%					10	%

In applying the lower of cost or net realizable value rule, the inventory of apparel would be valued at:

A) $108,000.

B) $90,000.

C) $110,000.

D) $99,000.