Under the last-in first-out (LIFO) inventory valuation method, a price index for inventory must be established for tax purposes. The quantity weights are based on year-ending inventory levels. Use the beginning-of-the-year price per unit as the base-period price and develop a weighted aggregate index for the total inventory value at the end of the year. What type of weighted aggregate price index must be developed for the LIFO inventory valuation?

Transcribed Image Text:

Endin# Unit Price () ProductInventory Ending 500 50 100 Beginning .15 1.60 4.50 12.00 .19 1.80 4.20 13.20