Question
Use the following information to perform the calculations in a-d below. Millie & Sons adopted Dollar-Value Retail LIFO on December 31, 2013, when the inventory's
Use the following information to perform the calculations in a-d below.
Millie & Sons adoptedDollar-Value Retail LIFOon December 31, 2013, when the inventory's retail value was $125,000, and the cost/retail ratio was 75%. On December 31, 2014, the retail value of ending inventory was $185,000, the cost/retail ratio was 78%, and the cost index was 1.05. (Round percentages to 3 numbers to the right of the decimal, ex .543, and dollars to nearest dollar.)
a)Determinebase year (2013) ending inventory atcost.Show your work!
b)Determine theretail valueof the December 31, 2014 ending inventory inbase year dollars.Show your work!
c)Determine theretail valueof the new2014 layerof inventory inbase year dollars.Show your work!
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d)Compute thetotal estimated December 31, 2014 ending inventory atcostassuming the Dollar-Value Retail LIFO method is used.Show your work!
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