The following information relates to the Matthew Young Company.

Date Ending Inventory (End-of-Year Prices) Price Index

December 31, 2016 $68,400 100

December 31, 2017 122,744 134

December 31, 2018 132,904 148

December 31, 2019 150,920 154

December 31, 2020 141,920 160

Use the dollar-value LIFO method to compute the ending inventory for Young Company for 2016 through 2020.

Ending Inventory

2016 $

2017 $

2018 $

2019 $

2020 $

year 2016 $ 68,400

year 2017 $ 99,488

year 2018 $ 97,076

year 2019 $ 109,704

year 2020 $ 95,602

Explanation:

2016: year-base the nominal is the same as the ending

2017:

122,744 x 100/134 = 91,600

second layer:

91,600 - 68,400 = 23,200

ending inventory

base layer 68,400

23,200 x 134/100 = 31,088

total 99,488

2018:

132,904 / 1.48 = 89,800

89,800 - 68,400 = 21.400

21,400 x 1.34 = 28,676

68,400 + 28,676 = 97,076

2019:

150,920 / 1.54 = 98,000

98,000 - 68,400 = 29,600

29,600 - 21,400 = 8,200

Layers

68,400 x 100/100 = 68,400

21,400 x 134/100 = 28,676

8,200 x 154/100 = 12,628

Ending Inv 109,704

2020:

141,920 / 1.60 = 88,700

88,700 - 68,400 = 20,300

Layers:

68,400 x 100/100 = 68,400

20,300 x 134/100 = 27,202

Ending Inventory 95,602