Question

Question:Tori Amos Corporation began operations on December 1, 2016. The only inventory transaction in 2016 was the purchase of inventory on December 10, 2016, at a cost of \(20 per unit. None of this inventory was sold in 2016. Relevant information is as follows.

Ending inventory units

December 31, 2016 100

December 31, 2017, by purchase date

December 2, 2017 100

July 20, 2017 50 150

During the year, the following purchases and sales were made.

Purchases Sales

March 15 300 units at \)24 April 10 200

July 20 300 units at 25 August 20 300

September 4 200 units at 28 November 18 150

December 2 100 units at 30 December 12 200

The company uses the periodic inventory method.

Instructions

(a) Determine ending inventory under (1) specific identification, (2) FIFO, (3) LIFO, and (4) average cost.

(b) Determine ending inventory using dollar-value LIFO. Assume that the December 2, 2017, purchase cost is the current cost of inventory. (Hint:The beginning inventory is the base layer priced at $20 per unit.)

Short answer

Ending inventory under the given methods are as follow –

Specific Identification $4,250

FIFO $4,400

LIFO $3,200

Average $3,795

Dollar value LIFO $3,500

Step-by-step solution

Determination of ending inventory

(1) Ending inventory by specific identification

$$\begin{gathered} \mathbf{\text{Endinginventoryat20July2017=No.ofunits×Costpriceon20July}} \\ \mathbf{\text{=50×\$25}} \\ \mathbf{\text{=\$1,250}} \end{gathered}$$

$$\begin{gathered} \mathbf{\text{EndinginventoryatDec2=No.ofunits×CostpriceonDec2}} \\ \mathbf{\text{=100×\$30}} \\ \mathbf{\text{=\$3,000}} \end{gathered}$$

$$\begin{gathered} \mathbf{\text{Totalvalueunderspecificidentification=InventoryvalueonJuly20+InventoryvalueonDec2}} \\ \mathbf{\text{=\$1,250+\$3,000}} \\ \mathbf{\text{=\$4,250}} \end{gathered}$$

(2) Ending inventory at FIFO

localid="1649488587643" $$\begin{gathered} \mathbf{\text{EndinginventoryunderFIFO=}}\mathbf{(}\mathbf{100}\mathbf{}\mathbf{units}\mathbf{\times }\mathbf{}\mathbf{Dec}\mathbf{}\mathbf{2}\mathbf{}\mathbf{cost}\mathbf{)}\mathbf{+}\mathbf{(}\mathbf{50}\mathbf{}\mathbf{units}\mathbf{\times }\mathbf{July}\mathbf{}\mathbf{20}\mathbf{}\mathbf{cost}\mathbf{)} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{(}\mathbf{100}\mathbf{\times }\mathbf{\$}\mathbf{30}\mathbf{)}\mathbf{+}\mathbf{(}\mathbf{50}\mathbf{\times }\mathbf{\$}\mathbf{28}\mathbf{)} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{4}\mathbf{,}\mathbf{400} \end{gathered}$$

(3) Ending inventory at LIFO

$$\begin{gathered} \mathbf{\text{EndinginventoryunderLIFO=}}\mathbf{(}\mathbf{100}\mathbf{}\mathbf{units}\mathbf{\times }\mathbf{}\mathbf{Jan}\mathbf{}\mathbf{1}\mathbf{}\mathbf{cost}\mathbf{)}\mathbf{+}\mathbf{(}\mathbf{50}\mathbf{}\mathbf{units}\mathbf{\times }\mathbf{March}\mathbf{}\mathbf{15}\mathbf{}\mathbf{cost}\mathbf{)} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{(}\mathbf{100}\mathbf{\times }\mathbf{\$}\mathbf{20}\mathbf{)}\mathbf{+}\mathbf{(}\mathbf{50}\mathbf{\times }\mathbf{\$}\mathbf{24}\mathbf{)} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{3}\mathbf{,}\mathbf{200} \end{gathered}$$

(4) Ending inventory at Average cost

localid="1649489524402" $$\begin{gathered} \mathbf{\text{Averagecost=}}\frac{\mathbf{(}\mathbf{100}\mathbf{}\mathbf{units}\mathbf{\times }\mathbf{}\mathbf{Jan}\mathbf{}\mathbf{1}\mathbf{}\mathbf{cost}\mathbf{)}\mathbf{+}\mathbf{(}\mathbf{300}\mathbf{}\mathbf{units}\mathbf{\times }\mathbf{March}\mathbf{}\mathbf{15}\mathbf{}\mathbf{cost}\mathbf{)}\mathbf{+}\mathbf{(}\mathbf{300}\mathbf{}\mathbf{units}\mathbf{\times }\mathbf{July}\mathbf{}\mathbf{20}\mathbf{}\mathbf{cost}\mathbf{)}\mathbf{+}\mathbf{(}\mathbf{200}\mathbf{}\mathbf{units}\mathbf{\times }\mathbf{Sept}\mathbf{}\mathbf{24}\mathbf{}\mathbf{cost}\mathbf{)}\mathbf{+}\mathbf{(}\mathbf{100}\mathbf{}\mathbf{units}\mathbf{\times }\mathbf{Dec}\mathbf{}\mathbf{2}\mathbf{}\mathbf{cost}\mathbf{)}}{\mathbf{Total}\mathbf{}\mathbf{No}\mathbf{.}\mathbf{of}\mathbf{}\mathbf{units}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\frac{\mathbf{(}\mathbf{100}\mathbf{\times }\mathbf{\$}\mathbf{20}\mathbf{)}\mathbf{+}\mathbf{(}\mathbf{300}\mathbf{\times }\mathbf{\$}\mathbf{24}\mathbf{)}\mathbf{+}\mathbf{(}\mathbf{300}\mathbf{\times }\mathbf{\$}\mathbf{25}\mathbf{)}\mathbf{+}\mathbf{(}\mathbf{200}\mathbf{\times }\mathbf{\$}\mathbf{28}\mathbf{)}\mathbf{+}\mathbf{(}\mathbf{100}\mathbf{\times }\mathbf{\$}\mathbf{30}\mathbf{)}}{\mathbf{100}\mathbf{+}\mathbf{300}\mathbf{+}\mathbf{300}\mathbf{+}\mathbf{200}\mathbf{+}\mathbf{100}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{25}\mathbf{.}\mathbf{3} \\ \mathbf{\text{EndinginventoryunderAveragecost=150units×Averagecost}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{\text{=150×\$25.3}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{\text{=\$3,795}} \end{gathered}$$

Ending inventory at dollar value LIFO

$$\begin{gathered} \mathit{E}\mathit{n}\mathit{d}\mathit{i}\mathit{n}\mathit{g}\mathbf{}\mathit{I}\mathit{n}\mathit{v}\mathit{e}\mathit{n}\mathit{t}\mathit{o}\mathit{r}\mathit{y}\mathbf{}\mathit{a}\mathit{t}\mathbf{}\mathit{c}\mathit{u}\mathit{r}\mathit{r}\mathit{e}\mathit{n}\mathit{t}\mathbf{}\mathit{y}\mathit{e}\mathit{a}\mathit{r}\mathbf{}\mathit{c}\mathit{o}\mathit{s}\mathit{t}\mathbf{=}\mathbf{150}\mathbf{}\mathit{u}\mathit{n}\mathit{i}\mathit{t}\mathit{s}\mathbf{\times }\mathit{C}\mathit{u}\mathit{r}\mathit{r}\mathit{e}\mathit{n}\mathit{t}\mathbf{}\mathit{y}\mathit{e}\mathit{a}\mathit{r}\mathbf{}\mathit{c}\mathit{o}\mathit{s}\mathit{t}\mathbf{}\mathit{p}\mathit{r}\mathit{i}\mathit{c}\mathit{e} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{150}\mathbf{\times }\mathbf{\$}\mathbf{30} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{4}\mathbf{,}\mathbf{500} \\ \mathit{E}\mathit{n}\mathit{d}\mathit{i}\mathit{n}\mathit{g}\mathbf{}\mathit{I}\mathit{n}\mathit{v}\mathit{e}\mathit{n}\mathit{t}\mathit{o}\mathit{r}\mathit{y}\mathbf{}\mathit{a}\mathit{t}\mathbf{}\mathit{b}\mathit{a}\mathit{s}\mathit{e}\mathbf{}\mathit{y}\mathit{e}\mathit{a}\mathit{r}\mathbf{}\mathit{c}\mathit{o}\mathit{s}\mathit{t}\mathbf{=}\mathbf{150}\mathbf{}\mathit{u}\mathit{n}\mathit{i}\mathit{t}\mathit{s}\mathbf{\times }\mathit{B}\mathit{a}\mathit{s}\mathit{e}\mathbf{}\mathit{y}\mathit{e}\mathit{a}\mathit{r}\mathbf{}\mathit{c}\mathit{o}\mathit{s}\mathit{t}\mathbf{}\mathit{p}\mathit{r}\mathit{i}\mathit{c}\mathit{e} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{150}\mathbf{\times }\mathbf{\$}\mathbf{20} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{3}\mathbf{,}\mathbf{000} \end{gathered}$$

$$\begin{gathered} \mathit{P}\mathit{r}\mathit{i}\mathit{c}\mathit{e}\mathit{I}\mathit{n}\mathit{d}\mathit{e}\mathit{x}\mathbf{=}\frac{\mathbf{E}\mathbf{n}\mathbf{d}\mathbf{i}\mathbf{n}\mathbf{g}\mathbf{I}\mathbf{n}\mathbf{v}\mathbf{e}\mathbf{n}\mathbf{t}\mathbf{o}\mathbf{r}\mathbf{y}\mathbf{a}\mathbf{t}\mathbf{C}\mathbf{u}\mathbf{r}\mathbf{r}\mathbf{e}\mathbf{n}\mathbf{t}\mathbf{c}\mathbf{o}\mathbf{s}\mathbf{t}}{\mathbf{E}\mathbf{n}\mathbf{d}\mathbf{i}\mathbf{n}\mathbf{g}\mathbf{I}\mathbf{n}\mathbf{v}\mathbf{e}\mathbf{n}\mathbf{t}\mathbf{o}\mathbf{r}\mathbf{y}\mathbf{a}\mathbf{t}\mathbf{B}\mathbf{a}\mathbf{s}\mathbf{e}\mathbf{c}\mathbf{o}\mathbf{s}\mathbf{t}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\frac{\mathbf{\$}\mathbf{4}\mathbf{,}\mathbf{500}}{\mathbf{\$}\mathbf{3}\mathbf{,}\mathbf{000}} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{1}\mathbf{.}\mathbf{5} \\ \mathit{L}\mathit{a}\mathit{y}\mathit{e}\mathit{r}\mathbf{=}\mathit{E}\mathit{n}\mathit{d}\mathit{i}\mathit{n}\mathit{g}\mathit{i}\mathit{n}\mathit{v}\mathit{e}\mathit{n}\mathit{t}\mathit{o}\mathit{r}\mathit{y}\mathit{a}\mathit{t}\mathit{b}\mathit{a}\mathit{s}\mathit{e}\mathit{c}\mathit{o}\mathit{s}\mathit{t}\mathbf{-}\mathit{O}\mathit{p}\mathit{e}\mathit{n}\mathit{i}\mathit{n}\mathit{g}\mathit{i}\mathit{n}\mathit{v}\mathit{e}\mathit{n}\mathit{t}\mathit{o}\mathit{r}\mathit{y}\mathit{a}\mathit{t}\mathit{b}\mathit{a}\mathit{s}\mathit{e}\mathit{c}\mathit{o}\mathit{s}\mathit{t} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{3}\mathbf{,}\mathbf{000}\mathbf{-}\mathbf{\$}\mathbf{2}\mathbf{,}\mathbf{000} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{1}\mathbf{,}\mathbf{000} \\ \mathit{D}\mathit{o}\mathit{l}\mathit{l}\mathit{a}\mathit{r}\mathit{v}\mathit{a}\mathit{l}\mathit{u}\mathit{e}\mathit{L}\mathit{I}\mathit{F}\mathit{O}\mathit{I}\mathit{n}\mathit{v}\mathit{e}\mathit{n}\mathit{t}\mathit{o}\mathit{r}\mathit{y}\mathbf{=}\mathit{O}\mathit{p}\mathit{e}\mathit{n}\mathit{i}\mathit{n}\mathit{g}\mathit{i}\mathit{n}\mathit{v}\mathit{e}\mathit{n}\mathit{t}\mathit{o}\mathit{r}\mathit{y}\mathit{a}\mathit{t}\mathit{b}\mathit{a}\mathit{s}\mathit{e}\mathit{c}\mathit{o}\mathit{s}\mathit{t}\mathbf{+}\mathit{l}\mathit{a}\mathit{y}\mathit{e}\mathit{r}\mathit{a}\mathit{t}\mathit{p}\mathit{r}\mathit{i}\mathit{c}\mathit{e}\mathit{i}\mathit{n}\mathit{d}\mathit{e}\mathit{x} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{2}\mathbf{,}\mathbf{000}\mathbf{+}\left(\$1,000\times 1.5\right) \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{2}\mathbf{,}\mathbf{000}\mathbf{+}\mathbf{\$}\mathbf{1}\mathbf{,}\mathbf{500} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{3}\mathbf{,}\mathbf{500} \end{gathered}$$

So the ending inventory at dollar value LIFO is $3,500.