Chapter 10, Problem 10.21E

Dollar-Value LIFO Retail Inventory Method. Zorinak, Inc. uses the dollar-value LIFO retail inventory method for costing inventory. It has beginning inventory costing $ 154,000 at a cost-to-retail ratio of 72%. During the year Zorinak purchased goods with a cost basis of $770,000 and a retail value of $1,100,000. It had net markups of $33,000 and net markdowns of $49,500. Zorinak sold 80% of its goods available for sale during the year. The current-year price index is 1.03. What is Zorinak’s ending inventory at cost and retail using the dollar-value LIFO retail method? Round percentages to two decimal places.