This exercise is a continuation of BE 9–11. During 2025 (the following year), purchases at cost and retail were $168,000 and $301,000, respectively. Net markups, net markdowns, and net sales for the year were $3,000, $4,000, and $280,000, respectively. The retail price index at the end of 2025 was 1.06. Estimate ending inventory in 2025 using the dollar-value LIFO retail method and the information provided.

Data from in BE 9-11

On January 1, 2024, Select Variety Store adopted the dollar-value LIFO retail inventory method. Accounting  records provided the following information:

Estimate ending inventory using the dollar-value LIFO retail method and the information provided.

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Beginning inventory Net purchases Net markups Net markdowns Net sales Retail price index, end of year Cost $ 40,800 155,440 Retail $ 68,000 270,000 6,000 8,000 250,000 1.02