Answer:
2018 ending invnetory $ 311,710.00
2019 ending inventory $ 371,004.76
2020 ending inventory $359,804.76
2021 ending invnetory $ 361,904.76
Explanation:
We need to build up the layers
we divide each year by the base to convert into same year dollars
year-end inventory // cost index base year
beg $255,000 1.00
2018 $319,360 1.03 $310,058.25
the layer will be
beginning 255,000 at 1.00 = 255,000
2018 layer $55,058.25 at 1.03 = 56,710
Total ending inventory 311,710
Year 2019:
year-end inventory // cost index base year
2019 406560 1.12 363000
beginning layer 255,000.00 at 1.00 = 255,000
2018 layer 55,058.25 at 1.03 = 56,710
2019 layer 52,941.75 at 1.12 = 59,294.76
total ending inventory: 371.004,76
Year 2020:
year-end inventory // cost index base year
2020 384770 1.09 353000
beginning layer 255,000.00 at 1.00 = 255,000
2018 layer 55,058.25 at 1.03 = 56,710
2019 layer 42,941.75 at 1.12 = 48,094.76
total ending inventory: 359.804,76
explanation: as the inventory decrease we remove form the last layer rather than adding a new paer for hte year 2020.
Year 2021:
year-end inventory // cost index base year
2021 372750 1.05 355000
beginning layer 255,000.00 at 1.00 = 255,000.00
2018 layer 55,058.25 at 1.03 = 56,710.00
2019 layer 42,941.75 at 1.12 = 48,094.76
2021 layer 2,000.00 at 1.05 = 2,100.00
ending inventory $361,904.76
