Question: In 2010, Van Hover Inc. adopted the dollar-value LIFO retail inventory method. The January 1, 2010, price index was 1.00. The following data are available

In 2010, Van Hover Inc. adopted the dollar-value LIFO retail inventory method. The January 1, 2010, price index was 1.00. The following data are available for the 4-year period ending December 31, 2013.

______________________________________________________Cost...............Retail

2010:

Inventory, January 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $148,050..........$235,000

Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . 393,700..........635,000

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................590,000

Year-end price index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................1.12

2011:

Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $363,000..........$550,000

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...............579, 170

Year-end price index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................1.08

2012:

Purchases . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $377,000.........$650,000

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....................641,955

Year-end price index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................1.09

_____________________________________________________________Cost...........Retail

2013:

Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $504,000.........$800,000

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................762,500

Year-end price index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..................1.12

Instructions:

Calculate the inventories to be reported at the end of 2010, 2011, 2012, and 2013. Incremental layers are costed at end-of-year prices.

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