On January 1, 2021, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $101,700. The ending inventory, valued at year-end costs, and the relative cost index for each of the next three years is below:

Year-end	Ending inventory at year-end costs				Cost Index
2021	$	131,355				1.05
2022		150,480				1.10
2023		160,740				1.20

What inventory balance would Badger report on its 12/31/2023 balance sheet?

Could someone explain this indetailed step by step and tell me where the 11,500 and 23000 come from?