Addeo Retail Outlets, Inc., uses the dollar-value LIFO retail inventory method for inventory costing. Addeo Retail...

 

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Addeo Retail Outlets, Inc., uses the dollar-value LIFO retail inventory method for inventory costing. Addeo Retail Outlets, Inc., has beginning inventory with a cost of $10,000 and a retail value of $40,000. During the year, the company purchases goods with a cost basis of $80,000 and a retail basis of $100,000. It has net markups of $10,000 and net markdowns of $5,000. Sales are $50,000 at retail. The price index for the current year is 1.04. Addeo Retail Outlets, Inc., adopted the dollar-value LIFO method at the end of the prior year, which is the base year with a price index of 1.00. Required: (Round all ratios to four decimal places and round all numbers to nearest dollar) a. What is the cost of the ending inventory using the dollar-value LIFO retail inventory method? b. Compute the cost to retail ratio under the conventional (LCM) retail method. Addeo Retail Outlets, Inc., uses the dollar-value LIFO retail inventory method for inventory costing. Addeo Retail Outlets, Inc., has beginning inventory with a cost of $10,000 and a retail value of $40,000. During the year, the company purchases goods with a cost basis of $80,000 and a retail basis of $100,000. It has net markups of $10,000 and net markdowns of $5,000. Sales are $50,000 at retail. The price index for the current year is 1.04. Addeo Retail Outlets, Inc., adopted the dollar-value LIFO method at the end of the prior year, which is the base year with a price index of 1.00. Required: (Round all ratios to four decimal places and round all numbers to nearest dollar) a. What is the cost of the ending inventory using the dollar-value LIFO retail inventory method? b. Compute the cost to retail ratio under the conventional (LCM) retail method.

Answer rating: 100% (QA)

a Dollarvalue LIFO Retail inventory method 7619 80000 105000 Cost to retail of current year Cost R... View the full answer