Question
Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2021. On that date, the...
Canova Corporation adopted the dollar-value LIFO retail method
on January 1, 2021. On that date, the cost of the inventory on hand
was $25,000 and its retail value was $31,250. Information for 2021
and 2022 is as follows:
| Ending Inventory at Retail |
Retail Price Index |
Cost-to-Retail Percentage |
||||||
| Date | ||||||||
| 12/31/2021 | $ | 52,000 | 1.30 | 84 | % | |||
| 12/31/2022 | $ | 60,000 | 1.28 | 85 | % | |||
Required:
1. What is the cost-to-retail percentage for the
inventory on hand at 1/1/2021?
2. Calculate the inventory value at the end of
2021 and 2022 using the dollar-value LIFO retail method.
Homework Answers
Answer #1
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