Under the last-in, first-out (LIFO) inventory valuation method, a price index for inventory must be established for tax purposes. The quantity weights are based on year-ending inventory levels. Unit Price ($)
Product Ending
Inventory Beginning Ending
A 500 0.17 0.21
B 50 1.40 1.80
C 100 4.50 4.20
D 60 12.00 13.20
Use the beginning-of-the-year price per unit as the base-period price and develop a weighted aggregate index for the total inventory value at the end of the year. (Round your answer to the nearest integer.)
I =
What type of weighted aggregate price index must be developed for the LIFO inventory valuation?
Paasche index
Laspeyres Index