(b) * Your answer is incorrect. Without prejudice to your solution to part (a), assume that you computed the June 30, 2025, inventory to be $54,000 at retail and the ratio of cost to retail to be 79%. The general price level has increased from 100 at January 1, 2025, to 108 at June 30, 2025. Compute the June 30, 2025, inventory at the June 30 price level under the dollar-value LIFO retail method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.) Ending inventory at dollar-value LIFO cost tA $ 36438
(b) * Your answer is incorrect. Without prejudice to your solution to part (a), assume that you computed the June 30, 2025, inventory to be $54,000 at retail and the ratio of cost to retail to be 79%. The general price level has increased from 100 at January 1, 2025, to 108 at June 30, 2025. Compute the June 30, 2025, inventory at the June 30 price level under the dollar-value LIFO retail method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.) Ending inventory at dollar-value LIFO cost tA $ 36438
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
pp.
Subject
Accounting
Transcribed Image Text:As of January 1, 2025, Flounder Inc. adopted the retail method of accounting for its merchandise inventory.
To prepare the store's financial statements at June 30, 2025, you obtain the following data.
Inventory, January 1
Markdowns
Markups
Markdown cancellations
Markup cancellations
Purchases
Sales revenue
Purchase returns
Sales returns and allowances
Cost
$32,700
99,228
2,700
Selling Price
$41,600
11,400
8,700
6,500
3,400
152,600
153,200
3,700
8,300
Transcribed Image Text:(b)
* Your answer is incorrect.
Without prejudice to your solution to part (a), assume that you computed the June 30, 2025, inventory to be $54,000 at retail and
the ratio of cost to retail to be 79%. The general price level has increased from 100 at January 1, 2025, to 108 at June 30, 2025.
Compute the June 30, 2025, inventory at the June 30 price level under the dollar-value LIFO retail method. (Round ratios for
computational purposes to O decimal places, e.g. 78% and final answer to O decimal places, e.g. 28,987.)
Ending inventory at dollar-value LIFO cost $
36438
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