Question: When the double - extension approach to the dollar - value LIFO inventory cost flow method is used, the inventory layer added in the current

When the double-extension approach to the dollar-value LIFO inventory cost flow method
is used, the inventory layer added in the current year is multiplied by an index number.
How would the following be used in the calculation of this index number?
Ending inventory Ending inventory
at current year cost at base year cost
a. Numerator Denominator
b. Numerator Not used
c. Denominator Numerator
d. Not used Denominator

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