Question

You assemble the following information for Oriole Department Store, which computes its inventory under the dollar-value LIFO method.

		Cost		Retail
Inventory on January 1, 2020		$364,800		$480,000
Purchases		614,400		768,000
Increase in price level for year				9%

Compute the cost of the inventory on December 31, 2020, assuming that the inventory at retail is (a) $470,880 and (b) $584,240. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answers to 0 decimal places, e.g. 28,987.)

(a)	Cost of the inventory on December 31, 2020		$
(b)	Cost of the inventory on December 31, 2020		$

Answer 1