Question - Dollar-Value LIFO Retail
You assemble the following information for Dillon Department Store, which computes its inventory under the dollar-value LIFO method.
|
Cost
|
Retail
|
|
Inventory on January 1, 2010
|
$231,120
|
$321,000
|
|
Purchases
|
390,336
|
513,600
|
|
Increase in price level for year
|
|
9%
|
Compute the cost of the inventory on December 31, 2010, assuming that the inventory at retail is (a) $314,901 and (b) $390,711.