Presented below is information related to Waterway Company. Ending Inventory (End-of-Year Prices) Date December 31, 2022 December 31, 2023 December 31, 2024 December 31, 2025 December 31, 2026 December 31, 2027 2022 2023 2024 2025 2026 2027 $ $ $76,400 119,568 116,644 Compute the ending inventory for Waterway Company for 2022 through 2027 using the dollar-value LIFO method. $ 131,393 157,779 187,318 Ending Inventory 76400 112800 Price Index 000 100 106 121 131 141 146

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.