Question 2 Partially correct Mark 3.64 out of 5.00 Flag question Computing and Recording Ending Inventory using Dollar-Value LIFO On January 1, 2020, Crow Company changed from FIFO to LIFO for income tax and external reporting purposes. On that same date, the beginning FIFO inventory (the base inventory for LIFO purposes) was $95,000 information is available from Crow's records for years 2020 through 2023. Ending Inventory Ending Inventory Year on a FIFO Basis at Base Year Costs 2020 $125,000 $113,600 2021 110,000 84,600 2022 2023 115,000 130,000 85,200 92,900 a. Compute the price indices used to calculate ending inventory at base year costs. Hint: Divide ending inventory on a FIFO basis by ending inventory at base year for each year. Note: Enter each price index rounded to two digits after the decimal; for example, enter an index of 1.42 for 1.424 or enter an index of 1.43 for 1.425. Price Index Year 2019 1 2020 1.1 2021 1.3 2022 2023 1.35 1.4 b. Compute the ending inventory on a dollar-value LIFO basis for each year, 2020 through 2023. In step four (restating layers of inventory into current year dollars) use rounded indices from part a. Round final answers to the nearest whole dollar. Dollar-value LIFO ending inventory, 2020$ Dollar-value LIFO ending inventory, 2021 $ Dollar-value LIFO ending inventory, 2022$ Dollar-value LIFO ending inventory, 2023$ 115,460 81,460 x 37,520 x 38,480 x c. Prepare the journal entry at each year-end, 2020 through 2023, to adjust inventory to LIFO. Date Account Name Dec. 31, 2020 Cost of Goods Sold Dr. 9,540 Cr. Allowance to Reduce FIFO Inventory to LIFO Basis Dec. 31, 2021 Cost of Goods Sold 0 0 9,540 Allowance to Reduce FIFO Inventory to LIFO Basis 37,520 x 0 0 37,520 x Dec. 31, 2022 Cost of Goods Sold 38,480 x Allowance to Reduce FIFO Inventory to LIFO Basis 0 Dec. 31, 2023 Cost of Goods Sold 46,360 x Allowance to Reduce FIFO Inventory to LIFO Basis 0 38,480 x 0 46,360 x