Question

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	0.15	0.21
B	50	1.40	1.80
C	100	4.50	4.20
D	60	11.00	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?

Laspeyres Index Paasche index    

Answer 1