E8-24B (Dollar-Value LIFO) The dollar-value LIFO method was adopted by Queen Corp.

E8-24B (Dollar-Value LIFO) The dollar-value LIFO method was adopted by Queen Corp. on January 1, 2014. Its inventory on that date was $510,000. On December 31, 2014, the inventory at prices existing on that date amounted to $530,000. The price level at January 1, 2014, was 100, and the price level at December 31, 2014, was 106.

Instructions

(a) Compute the amount of the inventory at December 31, 2014, under the dollar-value LIFO method.

(b) On December 31, 2015, the inventory at prices existing on that date was $588,600, and the price

level was 109. Compute the inventory on that date under the dollar-value LIFO method.