Retail and Fire Loss Golden Company adopted the dollar-value retail LIFO method on January 1, 2019. The following information relates to the following 2 years:

In addition, the following price indexes are available:
January 2019 100
December 2019 106
September 2020 110
On September 8, 2020, a fire destroyed the inventory except for goods in transit (properly recorded), FOB shipping point, at a cost of $8,000, and undamaged goods salvaged from the fire which had a retail value of $10,000.

Required:
Compute the cost of the inventory destroyed in the fire. Round the cost-to-retail ratio to 3 decimal places.

Transcribed Image Text:

2020 (through September 7) 2019 Retail Retail Cost Cost $ 90,000 Purchases Sales Net additional markups Net markdowns $ 40,000 100,000 $160,000 $ 350,000 280,000 40,000 70,000 Inventory, January 1 Purchases Sales Net additional markups Net markdowns 210,000 200,000 20,000 40,000