Problem II

John Company manufactures one product. On December 31, 2016, Johnadopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was $1,000,000. Inventory data are as follows:

Inventory at Price index

Year year-end prices (base year 2016)

2017 $1,320,000 1.10

2018 1,260,000 1.20

2019 1,820,000 1.30

Instructions

Compute the inventory at December 31, 2017, 2018, and 2019, using the dollar-value LIFO method for each year.