Question: The Johns Company adopts the dollar-value LIFO retail inventory method on January 1, 2007. The following information for 2007 is obtained from the company's records:

The Johns Company adopts the dollar-value LIFO retail inventory method on January 1,

2007. The following information for 2007 is obtained from the company's records:


The Johns Company adopts the dollar-value LIFO retail inventory


The price index on January 1, 2007 was 100 and on December 31, 2007 it was 110.

Required
Compute the cost of the inventory on December 31,2007.

Cost $20,000 60,000 Retail Inventory, lanuary 1, 2007 Purchases Net markups Net markdowns Sales $29,000 92,000 1,000 3,000 75,000

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