What inventory balance would ferret report on balance sheet

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Problem 1: On January 1, 2018, Ferret, Inc., adopted the dollar-value LIFO method. The inventory cost on this date was $100,000. The 2018 ending inventory, valued at year-end costs, was $126,000. The relative cost index for this inventory in 2018 was 1.05. Suppose that Ferret's 2019 ending inventory, valued at year-end costs, was $143,000 and that the relative cost index for this inventory in 2019 was 1.10. Also suppose that Ferret's 2020 ending inventory, valued at year-end costs, was $153,600 and that the relative cost index for this inventory in 2020 was 1.20. What inventory balance would Ferret report on its 12/31/20 balance sheet?

A) $128,000

B) $129,800

C) $128,900

D) $153,600

Reference no: EM132718225

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