The Wernli Manufacturing Company manufactures a single product. The managers, Brandon and Chris Wernli, decided on December 31, 2008, to adopt the dollar-value LIFO inventory method. The inventory value on that date using the newly adopted dollar-value LIFO method was $700,000.

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Compute the inventory value at December 31 of each year using the dollar-value method, assuming incremental layers are valued at year-endprices.

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Inventory at Year-End Prices Year-End Price Index Date Dec. 31, 2009 Dec. 3, 2010 Dec. 31, 201I $803,000 806,400 994,000 1.10 1.12 .20