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8-9 (Part Level Submission) Problem 8-9 (Part Level Submission) On January 1, 2017, Blue Wholesalers Inc. adopted the dollar-value LIFO inventory method for income tax

8-9 (Part Level Submission)
Problem 8-9 (Part Level Submission) On January 1, 2017, Blue Wholesalers Inc. adopted the dollar-value LIFO inventory method for income tax and external financial reporting purposes. However, Blue continued to use the FIFO inventory method for internal accounting and management purposes. In applying the LIFO method, Blue uses internal conversion price indexes and the multiple pools approach under which substantially identical inventory items are grouped into LIFO inventory pools. The following data were available for inventory pool no. 1, which comprises products A and B, for the 2 years following the adoption of LIFO.
FIFO Basis per Records
Units Unit Cost Total Cost
Inventory, 1/1/17
Product A 13,200 $65 $858,000
Product B 12,200 54 658,800
$1,516,800
Inventory, 12/31/17
Product A 20,200 78 $1,575,600
Product B 12,200 56 683,200
$2,258,800
Inventory, 12/31/18
Product A 16,200 87 $1,409,400
Product B 13,200 69 910,800
$2,320,200
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(a) Compute the internal conversion price indexes for 2017 and 2018. (Round price index to 0 decimal places, e.g. 162.)
2017 2018
Conversion price index

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