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1. Dollar-Value LIFO The dollar-value LIFO method was adopted by King Corp. on January 1, 2010. Its inventory on that date was $160,000. On December 31, 2010, the inventory at prices existing on that date amounted to $151,200. The price level at January 1, 2010, was 100, and the price level at December 31, 2010, was 112.
(a) Compute the amount of the inventory at December 31, 2010, under the dollar-value LIFO method.
(b) On December 31, 2011, the inventory at prices existing on that date was $195,500, and the price level was 115. Compute the inventory on that date under the dollar-value LIFO method.
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