Wise Company Adopted the Dollar-Value LIFO Method on January 1

Multiple Choice

Wise Company adopted the dollar-value LIFO method on January 1, 2014, at which time its inventory consisted of 6,000 units of Item A @ $5.00 each and 3,000 units of Item B @ $16.00 each. The inventory at December 31, 2014 consisted of 12,000 units of Item A and 7,000 units of Item B. The most recent actual purchases related to these items were as follows: Using the double-extension method, what is the price index for 2014 that should be computed by Wise Company?

A) 108.33%
B) 109.59%
C) 111.05%
D) 220.51%