Dollar Value Lifo. Inventory at the end of year is divided by year end price index to arrive at inventory at base year. Incremental layers are multiplied

by incremental layer index

inventory. If the problem does not state an incremental or average

price index then use the year end index for the incremental layers.

The inventory as of the adoption date of 12/31/2015 for Dollar Value LIFO is $ 205,000.

Additional data is as follows:

Inventory date Inventory at Year-end prices Year-End price index

12/31/2016 215,000 1.10

12/31/2017 245,000 1.14

12/31/2018 230,000 1.08

12/31/2019 270,000 1.12