Problem 2

Aber Company manufactures one product. On December 31, 2015, Aber adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was $270,000. Inventory data are as follows:

Inventory at Price index

Year year-end prices (base year 2009)

2016 $378,000 1.05

2017 552,000 1.15

2018 575,000 1.25

Instructions

Compute the inventory at December 31, 2016, 2017, and 2018, using the dollar-value LIFO method for each year