Collins Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2013. Its inventory at that date was $450,000 and the relevant price index was 100. Information regarding inventory for subsequent years is as follows:

Inventory at Current

Date Current Prices Price Index

December 31, 2014 $642,000 107

December 31, 2015 700,000 125

December 31, 2016 812,500 130

What is the cost of the ending inventory at December 31, 2015 under dollar-value LIFO?

a. $580,000.

b. $567,700.

c. $587,500.

d. $610,500.

Please teach me how to get the answer. Don't just tell me what the answer is.