Flop Company adopted the dollar-value LIFO inventory method on 12/31/13. On this date, its inventory consisted of the following items.

Item Number of Units Cost Per Unit Total Cost

X 200 $2.50 $ 500

Y 600 4.50 2,700

$3,200

Additional information:

December 31

2014 2015

1. Units of X in inventory 300 400

2. Cost of each X unit $3.00 $3.25

3. Units of Y in inventory 800 1,200

4. Cost of each Y unit $5.50 $6.00

Instructions a. Compute the price index for 2014. Round to 2 decimal places.

b. Calculate the 12/31/14 inventory.

c. Compute the price index for 2015. Round to 2 decimal places.

d. Calculate the 12/31/15 inventory.