Kelly Company adopted dollar-value LIFO on January 1, 2018, using two inventory pools each of which includes two types of inventory items. Kelly uses the double-extension method to compute the appropriate cost index. The following information about the inventory at the end of each year is available:

Required:
1. Compute the cost index for each year for each pool using a base of 100 for each index. Round each cost index to 4 decimal places.
2. Compute the dollar-value LIFO inventory at the end of each year. Round inventory to the nearest dollar.

Transcribed Image Text:

Pool 1 Pool 2 Average Cost per Unit Number Year Type Average Cost Number of Units Type of Units Unit per $10 $5 20,000 10,000 30,000 12,000 40,000 14,000 45,000 13,000 40,000 20,000 50,000 22,000 46,000 20,000 60,000 25,000 2018 20 D 8. 2019 11 24 D 12 2020 22 12 D 2021 B 25 8.