Steve's Repair Shop began operations on January 1, 2003. After discussing the matter with his accountant, Steve decided dollar-value LIFO should be used for inventory costing. Information concerning the inventory of Steve's Repair Shop is shown below.

Instructions:
Compute the inventory value at December 31 of each year under the dollar value LIFO inventory method, assuming incremental layers are valued using the year-end priceindex.

Transcribed Image Text:

Inventory at Year-End Prices Date Year-End Index Dec. 31, 2003 Dec. 31,2004 Dec. 31, 2005 Dec. 31.2006 .. $20,500 34,000 55,600 37,800 72,250 53,900 1.00 1.18 1.36 1.14 1.72 2.05 Dec. 31,2007