Answer ALL the parts. Post a CLEAR AND STEP BY STEP EXPLANATION. Do not post incomplete solutions

Aber Company manufactures one product. On December 31, 2016, Aber adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was $900,000. Inventory data are as follows:

Inventory at Price index

Year year-end prices (base year 2016)

2017 $1.260,000 1.05

2018 1,840,000 1.15

2019 1,900,000 1.25

2020 2,080,000 1.30

Instructions

a. Compute the inventory at December 31, 2017, 2018, 2019 and 2020, using the dollar-value LIFO method for each year.

b. Prepare the journal entries needed in 2017 and 2018 to adjust inventories from FIFO to LIFO.