Adopted the dollar-value lifo method

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On January 1, 2013, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $108,000. The 2013 ending inventory, valued at year-end costs, was $132,300. The relative cost index for this inventory in 2013 was 1.08. Assume that Badger's 2014 ending inventory, valued at year-end costs, was $142,500 and that the relative cost index for this inventory in 2014 was 1.14.

Suppose that Badger's 2015 ending inventory, valued at year-end costs, was $142,600 and that the relative cost index for this inventory in 2015 was 1.15. What inventory balance would Badger report on its 12/31/15 balance sheet?

None of the above is correct.

$142,600

$125,370

$124,000

Reference no: EM13791650

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