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On January 1, 2018, Avondale Lumber adopted the dollar-value LIFO inventory method. The inventory value for its one inventory pool on this date was $260,000.

  1. On January 1, 2018, Avondale Lumber adopted the dollar-value LIFO inventory method. The inventory value for its one inventory pool on this date was $260,000. An internally generated cost index is used to convert ending inventory to base year. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows:

Year Ended

Inventory

Cost Index

December 31

Year-End Costs

(Relative to Base Year)

2018

$

340,000

1.02

2019

350,000

1.06

2020

400,000

1.07

2021

430,000

1.10

Required: Calculate inventory amounts at the end of each year.

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