Part A - The Bravo Company manufactures a single product.  On December 31, 2012 Bravo adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was determined to be $500,000.  Inventory data for succeeding years are as follows:

Compute the inventory amount at December 31, 2013, 2014, and 2015 using the dollar-value LIFO inventory method for each year.

Part B - Information from Hope Company's records for the year ended December 31, 2015 is available as follows:

Hope had no work-in-process inventories at either the beginning or end of 2015.

• What would be Hope's finished goods inventory cost under the variable (direct) costing method at December 31, 2015?
• What would Hope's operating income be under the absorption costing method?

Part C - Tool City, Inc. had 300 cordless screwdrivers on hand at January 1, 2015 costing $45 each.  Purchases and sales of cordless screwdrivers during the month of January were as follows:

Tool City does not maintain perpetual inventory records.  According to a physical count, 150 cordless screwdrivers were on hand at January 31, 2015.

• What is the cost of the inventory at January 31, 2015 under the FIFO method?
• What is the cost of the inventory at January 31, 2015 under the LIFO method?
• What is the cost of the inventory at January 31, 2015 under the FIFO method if only 145 cordless screwdrivers were on hand at the time of the physical count?