A company has determined its year$-$end inventory on a LIFO basis to be $$608,000.$ Information pertaining to that inventory is as follows:

What should be the reported amount of the company's inventory?

Multiple Choice

$$628,000$

$$694,000$

$$610,000$

$$608,000$

A company using the LIFO retail method has the following information for the current year's operations:

To convert ending inventory to cost$,$ management calculates the cost$-$to$-$retail percentage as cost of $$475,000(=$$$50,000+$$$425,000)$ divided by retail

of $)=($$$80,000+$$$740,000.$ Which of the following statements is correct?

Multiple Choice

The retail amount used to calculate the cost$-$to$-$retail percentage should be $$110,000(=$$$80,000+$$$740,000-$$$710,000).$

Only net purchases during the year are used to calculate the cost$-$to$-$retail percentage to convert ending inventory to cost$.$

The calculation of the cost$-$to$-$retail percentage is correct.

Separate cost$-$to$-$retail percentages for beginning inventory and net purchases are needed to convert ending inventory to cost$.$