15.

The company had the following inventory at end-of-year prices: $150,000 in 2018 (base year), $167,000 in 2019, and $168,000 in 2020. The price index is 1.03 in 2019 and 1.08 in 2020. What is the value of inventory using dollar value LIFO in 2020?

$162,500

$156,000

$155,556

$155,723

16.

If the company overstates purchases and ending inventory by the same amount, then:

All of the statements are false

Accounts payable will be understated

The current ratio will be understated

Cost of goods sold will be understated