Question
Exercise 9-20 (Algo) Dollar-value LIFO retail [LO9-5] Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2024. On that date, the cost of
Exercise 9-20 (Algo) Dollar-value LIFO retail [LO9-5]
Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2024. On that date, the cost of the inventory on hand was $28,000 and its retail value was $40,000. Information for 2024 and 2025 is as follows:
| Date | Ending Inventory at Retail | Retail Price Index | Cost-to-Retail Percentage |
|---|---|---|---|
| 12/31/2024 | $ 63,000 | 1.40 | 73% |
| 12/31/2025 | $ 72,000 | 1.50 | 75% |
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.
Cost-to-retail percentage 70%
2024 | 2025
Ending inventory
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Internal Audit Handbook Management With The SAP Audit Roadmap
Authors: Henning Kagermann, William Kinney, Karlheinz Küting, Claus-Peter Weber, Z. Keil, C. Boecker, J. Busch, O. Bussiek, M. H. Christ, P. Eckes, M. Falk, P. S. Greenberg, B. Reichert, M. Wolf
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