The XRG Company uses dollar-value LIFO method of calculating inventory. The external price index is used to convert ending inventory to base year. Company began operations on January 1, 2006 with the inventory of $150,000. Year end inventories at year-end costs and related cost indices for its one inventory pool are given below:
Year-ended 31-Dec Inventory at Year-end Costs Cost Index (Relative to Base Year)
2006 $200,000 1.08
2007 245,700 1.17
2008 235,980 1.14
2009 228,800 1.1
problem: Compute the carrying value of inventory on each year-end balance sheet.