Giddens Company adopted the dollar- value LIFO inventory method on December 31, Year 1. On December 31, Year 1, Giddens’ inventory was in a single inventory pool and was valued at $ 400,000 under the dollar- value LIFO method. Inventory data for Year 2 are as follows:
12/ 31 Year 2 inventory at year- end prices ………………………… $ 550,000
Price index at 12/ 31 Year 2 (base year Year 1)…………………….. 110
Giddens’ inventory at dollar- value LIFO at December 31, Year 2 is:
a. $ 440,000
b. $ 510,000
c. $ 500,000
d. $ 550,000