Dunk Company adopted the dollar-value LIFO inventory method on 12/31/2020 and uses one inventory pool. On this date, its inventory consisted of the following items:

Item Number of Units Cost Per Unit

A 300 $2.50

B 900 4.50

Additional information:

December 31

2021 2022

Units of Item A in inventory 450 500

Units of Item B in inventory 1,200 1,000

Cost of each unit of Item A $3.00 $3.25

Cost of each unit of Item B 5.50 6.00

Required

1. Compute the price index for 2021. Round to 2 decimal places.

2. Calculate the 12/31/2021 inventory.

3. Compute the price index for 2022. Round to 2 decimal places.

4. Calculate the 12/31/2022 inventory.