The Wernli Manufacturing Company manufactures a single product. The managers, Brandon and Chris Wernli, decided on December 31, 2010, 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. Additional information follows:
_________________________________________________________Inventory at...................Year-End
Date..............................................................................Year-End Prices...............Price Index
Dec. 31, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $803,000.........................1.10
Dec. 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 806,400...........................1.12
Dec. 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 894,000...........................1.20
Compute the inventory value at December 31 of each year using the dollar-value method, assuming incremental layers are valued at year-end prices.