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Blossom Company cans a variety of vegetable-type soups. Recently, the company decided to value its inventories using dollar-value LIFO pools. The clerk who accounts for
Blossom Company cans a variety of vegetable-type soups. Recently, the company decided to value its inventories using dollar-value LIFO pools. The clerk who accounts for inventories does not understand how to value the inventory pools using this new method, so, as a private consultant, you have been asked to teach him how this new method works. He has provided you with the following information about purchases made over a 6-year period. Ending Inventory (End-of-Year Prices) $87,600 143,706 140,304 166,400 190,232 222,500 Date Dec 31, 2016 Dec 31, 2017 Dec 31, 2018 Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 Price Index 100 129 148 160 172 178 You have already explained to him how this inventory method is maintained, but he would feel better about it if you were to leave him detailed instructions explaining how these calculations are done and why he needs to put all inventories at a base-year value. Compute the ending inventory for Blossom Company for 2016 through 2021 using dollar-value LIFO. Ending Inventory 2016 $ 2017 $ 2018 $ 2019 $ 2020 $ 2021 $
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