DV LIFO conversion and tax savings using LIFO reserve

1.taxsave corporation adopted dollar value lifo on january 1, 2013 when the inventory was 800,000 and the cost index was 1.0 the following table contains the current fifo cost and yearly index :

Date	FIFO Current cost	Price Index
12/31/2013	$882,000	1.05
12/31/2014	$896,000	1.08
12/31/2015	$952,000	1.12

Taxsave would report a DV LIFO inventory as of december 31,2013 , 2014 and 2015 respectively. Calculate the DV LIFO, LIFO reserve and tax savings each year

2. Comprehensive Case of Retail Inventory Method

Estor retailer Co. uses the retail method of inventory for its financial reporting. data for the end of 2015 follows: (unit : thousand dollars)

	Cost $	Retail $
Beginning Inventory	1,200	1,600
Purchases (net)	11,000	14,000
Markups (net)		600
Markdowns (net)		(400)
Normal shrinkage		(250)
Goods available for sale	12,200	15,550

. Sales to customers : $13,468

. Sales to employees : $240 ( net of 20% discount)

1. Find the ending inventory at retail

2. Estimate the cost of ending inventory and cost of goods sold under average cos . LCM method

3. Estimate the cost of ending inventory and cost of goods cold under LIFO cost

4. Assuming that the company adopted the dollar value LIFO on january 1,2015 and the retail price for the item increased 8% for 2015, estimate the cost of ending inventory and costs of goods sold under dollar value LIFO retail method.