Use the following information for the two questions below. Fallon Company manufactures a product called Roots Shampoo. On December 31, 2017, Fallon adopted the dollar-value LIFO inventory method. The inventory of Roots Shampoo on that date using the dollar-value LIFO inventory method was $450,000. Inventory data are as follows:

Year	Inventory at year-end prices	Price Index
2018	$630,000	1.05
2019	680,000	1.15
2020	800,000	1.25

What is ending inventory, using the dollar-value LIFO method for 2020?

A.

$681,739

B.

$658,370

C.

$680,000

D.

$659,239

The journal entry to record the LIFO reserve in 2020 will include:

A.

A credit to LIFO Reserve for $59,130

B.

A credit to Cost of Goods Sold for $59,130

C.

A debit to Cost of Goods Sold for $140,761

D.

A debit to LIFO Reserve for $140,761