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Compute the internal conversion price indexes

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Problem 8-9 (Part Level Submission) On January 1, 2017, Sarasota Wholesalers Inc. adopted the dollar-value LIFO inventory method for income tax and external financial reporting purposes. However, Sarasota continued to use the FIFO inventory method for internal accounting and management purposes. In applying the LIFO method, Sarasota uses internal conversion price indexes and the multiple pools approach under which substantially identical inventory items are grouped into LIFO inventory pools. The following data were available for inventory pool no. 1, which comprises products A and B, for the 2 years following the adoption of LIFO.

FIFO Basis per Records
Units Unit
Cost
 Total
Cost
Inventory, 1/1/17
   Product A 11,800 $44 $519,200
   Product B 10,800 37 399,600
$918,800
Inventory, 12/31/17
   Product A 18,800 53 $996,400
   Product B 10,800 38 410,400
$1,406,800
Inventory, 12/31/18
   Product A 14,800 59 $873,200
   Product B 11,800 47 554,600
$1,427,800

Compute the internal conversion price indexes for 2017 and 2018. (Round price index to 0 decimal places, e.g. 162.)

Reference no: EM131803997

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