Willy World Began Using Dollar-Value LIFO for Costing Its Inventory

Multiple Choice

Willy World began using dollar-value LIFO for costing its inventory two years ago. The ending inventory for the past two years in end-of-year dollars was $180,000 and $270,000 and the year-end price indices were 1.0 and 1.2, respectively. Assuming the current inventory at end of year prices equals $387,000 and the index for the current year is 1.25, what is the ending inventory using dollar-value LIFO?

A) $319,500.
B) $335,520.
C) $342,000.
D) $339,750.