The Wyatt Company adopts the dollar-value LIFO retail inventory method on January 1, 2007. The companys records
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The Wyatt Company adopts the dollar-value LIFO retail inventory method on January 1, 2007. The company’s records reveal that the inventory on January 1, 2007 had a cost of $75,000 and a retail value of $120,000. During 2007 the cost of purchases made was $110,000, and the retail value was $165,000. In addition, net markdowns were $6,000, net markups were $8,000, and sales were $147,000. The price index on January 1, 2007 was 100 and the index for 2004 was 110.
Required
Compute the cost of inventory on December 31, 2007. (Round the cost-to-retail index to 3 decimal places.)
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Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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