Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2011. On that date, the cost of the inventory on hand was $15,000 and its retail value was $18,750. Information for 2011 and 2012 is as follows:

Required:
1. What is the cost-to-retail percentage for the inventory on hand at 1/1/11?
2. Calculate the inventory value at the end of 2011 and 2012 using the dollar-value LIFO retailmethod.

Transcribed Image Text:

Date Ending Inventory at Retail Retail Price IndexCost-to-Retail Percentage 82% 85 12/31/11 S25.000 1.25 12/31/12 28,60 1.30