Under the last-in, first-out (LIFO) inventory valuation method, a price index for inventory must be established for tax purposes. The quantity weights are based on year-ending inventory levels. Unit Price ($) Product Ending Inventory Beginning Ending A 500 0.17 0.21 B 50 1.40 1.80 C 100 4.50 4.20 D 40 12.00 13.20 Use the beginning-of-the-year price per unit as the base-period price and develop a weighted aggregate index for the total inventory value at the end of the year. (Round your answer to the nearest integer.) I

105.35

Explanation:

The computation of Laspeyres Index is shown below:-

Laspeyres Index = 100 × (Sum(Ending × Ending Inventory) ÷ Sum(Beginning × Ending Inventory))

= 100 × ((500 × 0.21) + (50 × 1.80) + (100 × 4.20) + (40 × 13.20)) ÷ ((500 × 0.17) + (50 × 1.40) + (100 × 4.50) + (40 × 12)

= 100 × (105 + 90 + 420 + 528) ÷ (85 + 70 + 450 + 480)

= 100 × 1,143 ÷ 1,085

= 100 × 1.053

= 105.35

So, for computing the Laspeyres Index we simply applied the above formula.

due to the changes the federal reserve is making the unused reserves will impact the economy by them facing inflation. inflation is definfed as the increase in pricing of a good or service but the decline of the value of money used for purchasing those items. when the economy has a high inflation rate, they are subject to money loss and hurt on the economy.