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 $100,000 and $150,000 and the year-end price indices were 1.0 and 1.2, respectively.Assuming the current inventory at end of year prices equals $215,000 and the index for the current year is 1.25, what is the ending inventory using dollar-value LIFO?

A) $177,500.
B) $186,400.
C) $190,000.
D) $188,750.