Amber Company has used the dollar-value LIFO technique for the past three years. The company has only one inventory pool. Its beginning inventory for the current year was computed as follows:

a. The current-year ending inventory (end of year 3) at current prices is $2,124,000, and the LIFO index is 1.06. Determine the company's LIFO inventory as of the end of the current year.
b. Assume that the current-year ending inventory at current prices is $1,850,000. What is the end-of-the-current-year LIFO inventory value?

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LIFO Layer Base Period Cost LIFO Index Base period inventory 1.00 $1,200,000 312,000 $1,200,000 Year 1 layer Year 2 layer 1.04 1.06 300,000 400,000 $1,900,000 424,000 $1,936,000