Part A.

Judd Company has a beginning inventory in year one of $500,000 and an ending inventory of $605,000.

The price level has increased from 100 at the beginning year to 110 at the end of the year one.

Calculate the ending inventory under the dollar-value LIFO method

Part B.

At the end of year two, Judd's inventory is $713,000 in terms of a price level 115 which exists at the end of year two.

Calculate the inventory at the end of continuing the use of the dollar-value LIFO method