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Enya Corp dollar-value LIFO method

I cannot figure out the amounts. Both are less than the base year price, so I cannot use that year's price index, but the base year index of 100 is not getting me the answer. Please help. Thanks.

(Dollar-Value LIFO) The dollar-value LIFO method was adopted by Enya Corp. on January 1, 2007. Its inventory on that date was $160,000. On December 31, 2007, the inventory at prices existing on that date amounted to $140,000. The price level at January 1, 2007, was 100, and the price level at December 31, 2007, was 112.

Instructions

a.
Compute the amount of the inventory at December 31, 2007, under the dollar-value LIFO method.

b.
On December 31, 2008, the inventory at prices existing on that date was $172,500, and the price level was 115. Compute the inventory on that date under the dollar-value LIFO method.

Solution Preview

Instructions

a.
Compute the amount of the inventory at December 31, 2007, under the dollar-value LIFO method.

No of Units in Inventory on Jan 1 2007 = $160,000 / 100 = 1600 units

No of Units in ...

$2.19