Question
Charleston Company has elected to use the dollar-value LIFO retail method to value its inventory. The following data has been accumulated from the accounting records:
Charleston Company has elected to use the dollar-value LIFO retail method to value its inventory. The following data has been accumulated from the accounting records:
| Cost | Retail | |||||
| Merchandise inventory, January 1, 2021 | $ | 265,440 | $ | 420,000 | ||
| Net purchases | 647,948 | 1,012,000 | ||||
| Net markups | 13,200 | |||||
| Net markdowns | 3,200 | |||||
| Net sales | 606,000 | |||||
| Pertinent retail price indexes: | ||||||
| January 1, 2021 | 1.00 | |||||
| December 31, 2021 | 1.10 | |||||
Required: Estimate the ending inventory for December 31, 2021. (Round "Cost-to-retail percentage" to 2 decimal places.)
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Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
