HI,

I have few questions about the attached document.

My questions are in blue. I just want to understand. It looks like one number is off.

Thanks-Quest

Part A The Bravo Company manufactures a single product. On December 31, 2012 Bravo adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was determined to be $500,000. Inventory data for succeeding years are as follows: Inventory at Respective Relevant Price Index (Base Year-end Prices Year 2012) 2012 $500,000 1.00 2013 527,000 1.08 2014 635,000 1.15 2015 645,000 1.21 Year Ended December 31 Compute the inventory amount at December 31, 2013, 2014, and 2015 using the dollar-value LIFO inventory method for each year. (Round all amounts to the nearest dollar, 10 points each) Year Ending inventory Price Index Inventory base Change from year price prior years 2012 $500,000 1.00 $500,000 0 20113 $527,000 1.08 $487,963 ($12,037) 2014 $635,000 1.15 $552,174 $64,211 2015 $645,000 1.21 $533,058 ($19,166) Should this be (19,166) or (552,714 - 533,058= 19,116)? Inventory at the end of December, 2013 $487,963 @ 1.00 = $487,963 Inventory at the end of December, 2014 $487,963 @ 1.00 = $487,963 1. @1.08 =0 $64,211 @ 1.15 = $73,842.65 $487,963 + $73,842.65 = $561,805.65 or $561,806 Inventory at the end of December, 2015 $487,963 @ 1.00 = $487,963 0 @ 1.08 =0 $45,095 @ 1.15 = $51,859.25 0 @ 1.21 Should the $45,095 or $42,640 =0 $487,963 + $51,859.25 = $539,822.25 or $539,822 Should this be $542,689.49