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Skysong Company cans a variety of vegetable-type soups. Recently, the company decided to value its inventories using dollar-value LIFO pools. The clerk who accounts for

Skysong Company cans a variety of vegetable-type soups. Recently, the company decided to value its inventories using dollar-value LIFO pools. The clerk who accounts for inventories does not understand how to value the inventory pools using this new method, so, as a private consultant, you have been asked to teach him how this new method works. He has provided you with the following information about purchases made over a 6-year period.

Date

Ending Inventory (End-of-Year Prices)

Price Index

Dec. 31, 2016 $75,300 100
Dec. 31, 2017 119,880 111
Dec. 31, 2018 118,110 127
Dec. 31, 2019 140,760 138
Dec. 31, 2020 160,580 148
Dec. 31, 2021 188,958 154

You have already explained to him how this inventory method is maintained, but he would feel better about it if you were to leave him detailed instructions explaining how these calculations are done and why he needs to put all inventories at a base-year value. Compute the ending inventory for Skysong Company for 2016 through 2021 using dollar-value LIFO.

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