Final answer:
The current price index, given the ending inventory at current and base prices, is calculated to be approximately 112, indicating a 12% increase from the base prices.
Step-by-step explanation:
To calculate the current price index, we need to understand how price indices work. If we are given that the ending inventory is at $128,800 at current cost and $115,000 at base prices, we can use the formula:
Price Index = (Current Cost / Base Price) × 100.
Plugging in the provided values, we get:
Price Index = ($128,800 / $115,000) × 100
By calculating this, we find that the price index is approximately 112.00. This means that the price index is 112, showing that the current inventory cost has increased by 12% relative to the base prices.