Sparky Company adopted Dollar Value LIFO (DVL) on January 1, 20X1 for its one inventory pool.The inventory's value on this date was $360,000.The ending inventory valued at year-end costs for 20X1, 20X2 and 20X3 are reported below along with the price index for each year:

YearEnding Inventory at Year-end CostsSpecific Price IndexDec 31, 20X1$407,570106Dec 31, 20X2$439,450110Dec 31, 20X3$427,800115

a.Determine the Ending Inventory value to be reported on Sparky's balance sheet dated December 31, 20X3 using DVL:

b. If Sparky purchased $1,250,000 of goods held in inventory for 20X3, determine COGS for the year ended December 31, 20X3 using Dollar Value LIFO: