Dollar-Value LIFO Cost method (DVLC) Problem: 1. In year 1, Judd Company had a beginning inventory of $1,400,000 (beginning of the year price) and an ending inventory of $1,694,000 (YE price). The price index has increased from 100 at the beginning of the year to 110 at year end. Calculate the ending inventory for year 1 under the DVLC method (hint: (1) deflate BI and El "current cost amounts" back to base year value of $; (2) compare; (3) reinflate the surviving layer(s) to determine the LIFO EL)

2. At the end of year two, Judd's inventory was $1,713,500 in terms of a price index of 115 which existed at the end of year two. Calculate the inventory at the end of year two continuing the use of the DVLC method (hint: see above).