please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) Johns Company adopts the dollar-value LIFO retail inventory method on January 1, 2016. The following information for 2016 is obtained from Johns' records: CostRetailInventory, January 1, 2016$20,000$29,000Purchases60,00092,000Net additional markups—1,000Net markdowns—3,000Sales—75,000The price index on January 1, 2016, was 100, and on December 31, 2016, it was 110.Required:Compute the cost of the inventory on December 31, 2016. Round the cost-to-retail ratio to three decimal places.JOHNS COMPANYCalculation of cost of inventory using Dollar-Value LIFODecember 31, 2016 CostRetail $$ $ $ $$ Ending inventory at retail $Ending inventory at cost$

The overall cost a company incurs to acquire, produce, or store its inventory is referred to as…

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Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...

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please answer within the format by providing formula the detailed working
Please provide answer in text (Without image)
Please provide answer in text (Without image)
Please provide answer in text (Without image)

Johns Company adopts the dollar-value LIFO retail inventory method on January 1, 2016. The following information for 2016 is obtained from Johns' records:

	Cost	Retail
Inventory, January 1, 2016	$20,000	$29,000
Purchases	60,000	92,000
Net additional markups	—	1,000
Net markdowns	—	3,000
Sales	—	75,000

The price index on January 1, 2016, was 100, and on December 31, 2016, it was 110.

Required:

Compute the cost of the inventory on December 31, 2016. Round the cost-to-retail ratio to three decimal places.

JOHNS COMPANY
Calculation of cost of inventory using Dollar-Value LIFO
December 31, 2016
	Cost	Retail
	$	$
		$


		$
	$	$

Ending inventory at retail		$
Ending inventory at cost	$

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