The Johnson Manufacturing Company manufactures a single product. The managers, Ron and Ken Johnson, decided on December 31, 2005, to adopt the dollar-value LIFO inventory method. The inventory value on that date using the newly adopted dollar-value LIFO method was $500,000. Additional information follows:

Compute the inventory value at December 31 of each year using the dollar-value method, assuming incremental layers are valued at year-endprices.

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Inventory Year-End Year-End Prices Price Index Date Dec. 31, 2006 Dec. 3.2007 Dec. 31. 2008 . $605,000 597,360 700,000 1.10 1.14 1.25