Dollar-Value LIFO Retail Intella Inc. adopted the dollar-value retail LIFO method on January 1, 2018. The following data apply to the 4 subsequent years: Cost Retail Cost Retail $40,000 $80,000 2020 Purchases $117,600 $280,000 85,500 190,000 Sales 260,000 200,000 2021 Purchases 320,000 Sales 300,000 2018 Inventory, January 1 Purchases Sales 2019 Purchases Sales 92,000 230,000 210,000 In addition, the following price indexes are available: January 1, 2018 December 31, 2018 December 31, 2019 Required: Compute the inventory at the end of each of the 4 years. Round the cost-to-retail ratio to 3 decimal places and the final answers to the nearest dollar. Ending inventory 100 December 31, 2020 105 December 31, 2021 110 2018 33,333 ✓ $ 2019 147,200 40,000 X $ 120 125 2020 44,964 X $ 2021 52,055 X
Dollar-Value LIFO Retail Intella Inc. adopted the dollar-value retail LIFO method on January 1, 2018. The following data apply to the 4 subsequent years: Cost Retail Cost Retail $40,000 $80,000 2020 Purchases $117,600 $280,000 85,500 190,000 Sales 260,000 200,000 2021 Purchases 320,000 Sales 300,000 2018 Inventory, January 1 Purchases Sales 2019 Purchases Sales 92,000 230,000 210,000 In addition, the following price indexes are available: January 1, 2018 December 31, 2018 December 31, 2019 Required: Compute the inventory at the end of each of the 4 years. Round the cost-to-retail ratio to 3 decimal places and the final answers to the nearest dollar. Ending inventory 100 December 31, 2020 105 December 31, 2021 110 2018 33,333 ✓ $ 2019 147,200 40,000 X $ 120 125 2020 44,964 X $ 2021 52,055 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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M9
Transcribed Image Text:Dollar-Value LIFO Retail
Intella Inc. adopted the dollar-value retail LIFO method on January 1, 2018. The following data apply to the 4 subsequent years:
Cost
Retail
Retail
$40,000 $80,000 2020 Purchases
85,500
190,000
Sales
200,000 2021 Purchases
230,000
Sales
210,000
In addition, the following price indexes are available:
January 1, 2018
December 31, 2018
December 31, 2019
Required:
Compute the inventory at the end of each of the 4 years. Round the cost-to-retail ratio to 3 decimal places and the final answers to the nearest dollar.
2018 Inventory, January 1
Purchases
Sales
2019 Purchases
Sales
Ending inventory
92,000
December 31, 2020
105 December 31, 2021
100
110
2018
33,333 ✔ $
2019
40,000 X $
Cost
$117,600 $280,000
260,000
320,000
300,000
147,200
120
125
2020
44,964 X $
2021
52,055 X
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