Data for Sandhill Company is given below:

(a)

Sandhill Company has a beginning inventory in year one of $1,405,000 and an ending inventory of $1,705,000. The price level has increased from 100 at the beginning of the year to 110 at the end of year one. Calculate the ending inventory under the dollar-value LIFO method.

Ending inventory

$

b)

At the end of year two, Sandhill's inventory is $1,909,000 in terms of a price level of 115 which exists at the end of year two. Calculate the inventory at the end of year two continuing the use of the dollar-value LIFO method.

Ending inventory

$