Computinge nearest whole dollar.Converting FIFO Inventory to Dollar$-$Value LIFO and Preparing Year$-$End Adjustments to the LIFO Reserve

Year $6$ Ending Inventory $499,100$

Year $7$ Ending Inventory $504,000$

Required

a$.$ Convert the ending FIFO inventory to a LIFO basis for Year $5,$ Year $6,$ and Year $7,$ assuming the dollar$-$value LIFO method and using the internal price indices.

b$.$ Prepare the December $31$ year$-$end journal entry for Year $5,$ Year $6,$ and Year $7,$ to convert inventory from FIFO to LIFO.