Kingston Company uses the dollar-value LIFO method of computing inventory. An external price index is used to convert ending inventory to base year. The company began operations on January 1, 2018 with an inventory of $255,000. Year-end inventories at year-end costs and cost indexes for its one inventory pool were as follows. Year, Ended December 31 Ending Inventory at Year-End Costs Cost. Index (Relative to Base Year)2018 $319,360 1.032019 406,560 1.122020 384,770 1.092021 372,750 1.05RequiredCalculate inventory amounts at the end of each year.

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 indexbase 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 indexbase year

20194065601.12363000

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 indexbase year

20203847701.09353000

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 indexbase year

20213727501.05355000

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

answer; possession utility;