Dollar Value LIFO

On January 1, 2015, ECT Co. adopted the dollar-value LIFO method for its one inventory pool. The pool's value on this date was $500 million. The 2015 and 2016 ending inventory valued at year-end costs were $702 million and $840 million, respectively. The appropriate cost indexes are 1.12 for 2015 and 1.18 for 2016.

requirements:

Calculate the inventory balance that ECT Co. would report on its year-end balance sheets for 2015 using the dollar-value LIFO method

Calculate the inventory balance that ECT Co. would report on its year-end balance sheets for 2016 using the dollar-value LIFO method

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