Question
Pls do not copy from Chegg Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2016. On that date, the cost of the
Pls do not copy from Chegg
Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2016. On that date, the cost of the inventory on hand was $15,000 and its retail value was $18,750. Information for 2016 and 2017 is as follows:
| Date | Ending Inventory at Retail | Retail Price Index | Cost-to-Retail % |
|---|---|---|---|
| 12/31/16 | 25,000 | 1.25 | 82% |
| 12/31/17 | 28,600 | 1.30 | 85% |
1. What is the cost-to-retail percentage for the inventory on hand at 1/1/16?
2. Calculate the inventory value at the end of 2016 and 2017 using the dollar-value LIFO retail method. (Round your answers to the nearest whole dollar amount.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting Business Reporting For Decision Making
Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver, David Bond
7th Edition
0730369323, 9780730369325
