The Happenings Company adopted the dollar-value LIFO inventory method on December 31, 2017, when the price index was 1.00. Ending inventory on the date that it adopted dollar-value LIFO follows.

Information related to the year-end prices for the two years after the adoption of dollar-value LIFO is summarized in the following table.

Required

a. Compute Nat's Ending inventory under the dollar-value LIFO method for the years 2017 through 2021.

b. Prepare the journal entries for 2018 through 2021 to adjust inventory to the dollar-value LIFO basis.

c. Determine the ending balance of the LIFO reserve for 2018 through 202I.

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Number of Units Total FIFOCost Item MAS1840 $ 840 280 JAS2307 850 5 950 TOTAL $6 790 December 31 Description 2018 2019 Yearend pr ces (HIFO) – MAS1840 iventory Year end prices (HIFO) – JAS2307 inventory $ 2, 100 10,080 $ 2,639 16,800