P8.11 (L.O 4) Writing (Dollar-Value L.IFO) Richardson Company cans a variety of vegetable-type soups. Recently, the company decided to value its inventories using dollar value L.IFO pools. The elerk who accounts for inventories does not understand how to valne the inventory pools using this new method, so, as a private consultant, you have been asked to teach him how this new method works. He has provided you with the following information about purchases made over a 6 -year period. You have already explained to him how this imentory method is maintained, but he would feel better about it if you were to leave him detailed instructions explaining how these calculations are done and why be needs to put all inventoriea at a base-year value. Instructions a. Compute the ending imentory for Richardson Company for 2016 through 2021 using dollar-value L.IFO. b. Unins sour computation schedules as your illustration, write a step-by-step set of instructions explaining how the calculations are done, Hegin your explanation by briefly explaining the theory behind this inventory method, including the purpose of putting all amounts into base-jear price levels