Answer:
Ending Inventory
2013 $138,500
2014 $147,766
2015 $156,026
Explanation:
Ending Inventory for 2013 is $138,500 as per given.
Ending Inventory for 2014
Ending Inventory of 2013 $138,500
($138,500 x 1.00)
Add: $8,200* x 1.13 $9,266
Total $147,766
Here,
$165,771 ÷ 1.13= $146,700
$146,700 – $138,500 = $8,200
Ending Inventory for 2015
Ending Inventory or 2013 $138,500
($138,500 x 1.00)
Add: $8,200 x 1.13 9,266
$7,000** x 1.18 8,260
Total $156,026
Here,
$153,700 – $146,700 = $7,000
Ending inventory for 2013 was already given in the question which is also the beginning inventory of 2014. The ending inventory of 2014 was already given in the question. So, what we need to do is calculating how the beginning inventory follows the ending inventory. There were changes of price indexes which is led the beginning inventory to the ending inventory as par given. The same thing goes for the ending inventory of 2015.
