Reference no: EM131643423

Question - Grouper 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.

Ending Inventory Date (End-of-Year Prices) Price Index

Dec. 31, 2013 $85,300 100

Dec. 31, 2014 131,520 120

Dec. 31, 201512 8,095 137

Dec. 31, 2016 152,440 148

Dec. 31, 2017 173,600 160

Dec. 31, 2018 201,795 165

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 Richardson Company for 2013 through 2018 using dollar-value LIFO.