Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2021. On that date, the cost of the inventory on hand was $14,000 and its retail value was $20,000. Information for 2021 and 2022 is as follows: Ending Inventory at Retail Retail Price Cost-to-Retail Date Index Percentage 72% 12/31/2021 12/31/2022 $35,000 $49,000 1.40 1.75 74%
Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2021. On that date, the cost of the inventory on hand was $14,000 and its retail value was $20,000. Information for 2021 and 2022 is as follows: Ending Inventory at Retail Retail Price Cost-to-Retail Date Index Percentage 72% 12/31/2021 12/31/2022 $35,000 $49,000 1.40 1.75 74%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
11.
Transcribed Image Text:Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2021. On that date, the cost of the inventory on hand
was $14,000 and its retail value was $20,000. Information for 2021 and 2022 is as follows:
Ending Inventory
Retail Price
Cost-to-Retail
Date
12/31/2021
12/31/2022
at Retail
Index
Percentage
72%
$35,000
$49,000
1.40
1.75
74%
Required:
1. What is the cost-to-retail percentage for the inventory on hand at 1/1/2021?
2. Calculate the inventory value at the end of 2021 and 2022 using the dollar-value LIFO retail method.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Calculate the inventory value at the end of 2021 and 2022 using the dollar-value LIFO retail method. (Round your answers to
the nearest whole dollar amount.)
2021
2022
Ending inventory
< Required 1
Required 2 >
Transcribed Image Text:Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2021. On that date, the cost of the inventory on hand
was $14,000 and its retail value was $20,000. Information for 2021 and 2022 is as follows:
Retail Price
Ending Inventory
at Retail
Cost-to-Retail
Date
12/31/2021
12/31/2022
Index
Percentage
72%
$35,000
$49,000
1.40
1.75
74%
Required:
1. What is the cost-to-retail percentage for the inventory on hand at 1/1/2021?
2. Calculate the inventory value at the end of 2021 and 2022 using the dollar-value LIFO retail method.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
What is the cost-to-retail percentage for the inventory on hand at 1/1/2021?
Cost-to-retail percentage
%
< Required 1
Required 2 >
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education