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Concord 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

Concord 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.

Date

Ending Inventory (End-of-Year Prices)

Price Index

Dec. 31, 2013 $84,600 100
Dec. 31, 2014 130,186 119
Dec. 31, 2015 125,256 136
Dec. 31, 2016 148,029 147
Dec. 31, 2017 168,112 158
Dec. 31, 2018 199,916

164

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 Richardson Company for 2013 through 2018 using dollar-value LIFO.

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