Item 11

Item 11

Nu Company reported the following pretax data for its first year of operations.

Net sales		2,960
Cost of goods available for sale		2,360
Operating expenses		800
Effective tax rate		40	%
Ending inventories:
If LIFO is elected		960
If FIFO is elected		1,140

What is Nu's gross profit ratio if it elects LIFO?-----

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Item 12

Item 12

Udon Inc. adopted dollar-value LIFO (DVL) as of January 1, 2018, when it had an inventory of $710,000. Its inventory as of December 31, 2018, was $802,500 at year-end costs and the cost index was 1.07. What was DVL inventory on December 31, 2018?

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Bond Company adopted the dollar-value LIFO inventory method on January 1, 2018. In applying the LIFO method, Bond uses internal cost indexes and the multiple-pools approach. The following data were available for Inventory Pool No. 3 for the two years following the adoption of LIFO:

	Ending Inventory
Year	At Current Cost				At Base Year Cost				Cost Index
1/1/2018	$	301,000			$	301,000				1.00
12/31/2018		353,100				330,000				1.07
12/31/2019		434,320				356,000				1.22

Under the dollar-value LIFO method, the inventory at December 31, 2019, should be