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Coronado Company cans a variety of vegetable-type soups. Recently, the company decided to value its...

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Accounting

Coronado Company cans a variety of vegetable-type soups. Recently, the company decided to value its inventories using dollar-value LIFO pools. The clerk who accounts for inventories does not understand how to value the inventory pools using this new method, so, as a private consultant, you have been asked to teach him how this new method works. He has provided you with the following information about purchases made over a 6-year period.

Date

Ending Inventory (End-of-Year Prices)

Price Index

Dec. 31, 2013

$84,600

100

Dec. 31, 2014

130,186

119

Dec. 31, 2015

125,256

136

Dec. 31, 2016

148,029

147

Dec. 31, 2017

168,112

158

Dec. 31, 2018

199,916

164

You have already explained to him how this inventory method is maintained, but he would feel better about it if you were to leave him detailed instructions explaining how these calculations are done and why he needs to put all inventories at a base-year value. Compute the ending inventory for Richardson Company for 2013 through 2018 using dollar-value LIFO.

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