FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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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