CWB Teleconcepts, Inc. manufactures and distributes three models of hand- held devices: the Flame, the Globe, and the HD3. CWB uses the dollar- value LIFO method. Information for 2014, 2015, and 2016 is presented in the following table.

The cumulative price indices for 2014, 2015, and 2016 respectively are 1.00, 1.056, and 1.1155.
Required
a. Compute the company€™s ending inventory using dollar- value LIFO for each year. Treat the three models as one group. Round to the nearest dollar.
b. Prepare the journal entry required to adjust the LIFO reserve for each year.

Transcribed Image Text:

Description Base Year: 2014 2015 2016 Total FIFO Total FIFO Units 4,000 3,000 1,000 Total FIFO Cost $392.000 375.000 170,000 Cost Inventory Flame Globe HD3 5,000 6,000 3,000 Units 7000 5,000 5,000 $450,000 660,000 450,000 $658,000 580,000 900,000