Conway Company uses FIFO in its internal inventory accounts. At year end, it converts the FIFO results to DV LIFO. The company adopted LIFO on December 31, 2011 with a base inventory of $107,000. The following table summarizes data available through December 31, 2004.

	Inventory at year end cost	Cost Index
2012 ending inventory	$116,600	1.06
2013 ending inventory	$128,800	1.12
2014 ending inventory	$129,950	1.15

a. What amount would Conway report as the value of inventory under DV LIFO on its 2012 balance sheet?

2012 Inventory (DV LIFO)

b. What is the effect of the conversion to DV LIFO on 2012 COGS? Indicate below if COGS increases, decreases, or does not change as a result of the conversion from FIFO to DV LIFO and then indicate the dollar amount (if any).

Increase/Decrease/No Change ____________________

Dollar amount of the effect _____________________

c. What amount would Conway report as the value of inventory under DV LIFO on its 2013 balance sheet?

2013 Inventory (DV LIFO)

d. What amount would Conway report as the value of inventory under DV LIFO on its 2014 balance sheet?

2014 Inventory (DV LIFO)