Kelcie Sports uses the dollar-value LIFO retail method. The price index on January 1, 2019, was 100, and on that date the inventory was $20,000 (retail) and $14,000 (cost). Additional information follows: 20192020Purchases, retail$160,000$204,000Purchases, cost115,200150,960Sales160,416202,160Price index, Dec. 31.102103What is the cost of the December 31, 2020, inventory (to the nearest dollar)? a. $14,610 b. $14,638 c. $14,660 d. $15,854

The retail method uses the cost to sales ratio for calculation the value of inventory. The value of…

Answered: Kelcie Sports uses the dollar-value…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Kelcie Sports uses the dollar-value LIFO retail method. The price index on January 1, 2019, was 100, and on that date the inventory was $20,000 (retail) and $14,000 (cost). Additional information follows:

	2019	2020
Purchases, retail	$160,000	$204,000
Purchases, cost	115,200	150,960
Sales	160,416	202,160
Price index, Dec. 31.	102	103

What is the cost of the December 31, 2020, inventory (to the nearest dollar)?

	a.	$14,610
	b.	$14,638
	c.	$14,660
	d.	$15,854

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