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Question - Sheffield Corp. adopted the dollar-value LIFO method on January 1, 2017, at which time its inventory consisted of 8400 units of Item A @ $5 each and 2900 units of Item B @ $16 each. The inventory at December 31, 2017 consisted of 12000 units of Item A and 6000 units of Item B. The most recent actual purchases related to these items were as follows:
Items
Purchase Date
Quantity Purchased
Cost Per Unit
A
12/7/17
3000
$6
12/11/17
10200
5.90
12/15/17
6000
17
Using the double-extension method, what is the price index for 2017 that should be computed by Sheffield Corp.?
A. 226.42%
B. 114.24%
C. 116.96%
D. 115.50%
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