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Sullivan Produce Co. switched from FIFO to LIFO on January 1, 2015, for external reporting...

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Accounting

Sullivan Produce Co. switched from FIFO to LIFO on January 1, 2015, for external reporting and income tax purposes, while retaining FIFO for internal reports. On that date, the FIFO inventory equaled $360,000. The ensuing three-year period resulted in the following:

Inventory Cost

Date: Year-End costs Index

December 31, 2015 $438,000 1.05

December 31, 2016 460,000 1.15

December 31, 2017 520,000 1.25

Refer to exhibit 7-5. The ending inventory at December 31, 2016, at base-year price is:

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