Prince Paint Inc. manufactures and distributes house paints. Prince Paint uses the dollar value LIFO method. Information for 2018, 2019 and 2020 is presented in the following table:

Year	Inventory
2018 - Base Year	380,000
2019	392,000
2020	420,000

The cumulative price indices for 2018, 2019, and 2020 respectively are 1.0, 1.0160, 1.0526.

a.

Compute the company's ending inventory using dollar-value LIFO for each year. Round to the nearest dollar.

Year	2018	2019	2020
2018 Layer	380,000	380,000	380,000
2019 layer
2020 layer
Ending inventory under dollar value LIFO	380,000

b.

Prepare the journal entry required to adjust the LIFO reserve for each year.

1. Prepare the adjusting entry for 2019

2. Pepre th adjusting entry for 2020