Question
Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2024. On that date, the cost of the inventory on hand was $15,000 and
Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2024. On that date, the cost of the inventory on hand was $15,000 and its retail value was $18,750. Information for 2024 and 2025 is as follows:
| Date | Ending Inventory at Retail | Retail Price Index | Cost-to-Retail Percentage |
|---|---|---|---|
| 12/31/2024 | $ 25,000 | 1.25 | 82% |
| 12/31/2025 | $ 28,600 | 1.30 | 85% |
Required:
What is the cost-to-retail percentage for the inventory on hand at 1/1/2024?
Calculate the inventory value at the end of 2024 and 2025 using the dollar-value LIFO retail method.
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Construction Safety Auditing Made Easy A Checklist Approach To OSHA Compliance
Authors: Kathleen Hess-Kosa
2nd Edition
0865879796, 978-0865879799
