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beginning inventory at retail (base year)$ 120,000 ending inventory at retail$ 168,000 beginning cost-to-retail percentage40% current-year cost-to-retail percentage45% retail price index for the year1.12 what is the estimate of ending inventory using the dollar-value lifo retail method?

Respuesta :

The estimated ending inventory is $63120

Beginning inventory at base year retail:

= Beginning inventory ÷ Year end cost index

= $ 120,000 ÷ 1.00

= 120,000

Current inventory at base year retail:

= Ending inventory ÷ Year-end cost index

= $ 168,000 ÷ 1.12

= 150,000

Estimate of ending inventory:

= Base inventory + Current inventory

= (inventory at base year × Cost percentage × Year end cost index) + (inventory at base year retail × Cost percentage × Year end cost index)

= ( 120,000 × 40% × 1.00) + (30,000 × 45% × 1.12)

= $48,000 + $15,120

= $63,120

Learn more about LIFO method:

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