ANSWER:
Cost |
Retail |
Ratio |
|
Inventory |
615,600 |
810,000 |
76 |
Purchases |
1,036,800 |
1,296,000 |
80 |
(a) With 9% price level, inventory = $794,610 / 1.09 = 729,000
It is lesser than the $297,400 beginning inventory thus inventory at cost :
729,000 * 76% = 554,040
(b) With 9% price level, inventory = $985,905 / 1.09 = 904,500
Thus there an increase of $94,500 (=$904,500 - $810,000 =94,500)
New layer at retail: 94,500 * 1.09 = 103,005
New layer at cost: 103,005 * 80% = 82,404
Plus base layer: 615,600
Inventory at cost : 615,600 + 82,404 = 698,004
_____________________________________________
If you have any query or any Explanation please ask me in the comment box, i am here to helps you.please give me positive rating.
*****************THANK YOU**************
You assemble the following information for Ayayai Department Store, which computes its inventory under the dollar-value...
Current Attempt in Progress You assemble the following information for Shamrock Department Store, which computes its inventory under the dollar-value LIFO method. Inventory on January 1, 2020 Purchases Increase in price level for year Cost Retail $615,600 $810,000 1,036,800 1,296,000 9% Compute the cost of the inventory on December 31, 2020, assuming that the inventory at retail is (a) $794,610 and (b) $985,905. (Round ratios for computational purposes to O decimal places, e.g. 78% and final answers to O decimal...
You assemble the following information for Metlock Department Store, which computes its inventory under the dollar-value LIFO method. Cost Retail Inventory on January 1, 2020 $630,000 $900,000 Purchases 1,152,000 1,440,000 Increase in price level for year 9% Compute the cost of the inventory on December 31, 2020, assuming that the inventory at retail is (a) $882,900 and (b) $1,095,450. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answers to 0 decimal places, e.g. 28,987.) (a)...
You assemble the following information for Headland Department Store, which computes its inventory under the dollar-value LIFO method. Inventory on January 1, 2020 Purchases Increase in price level for year Cost Retail $189,000 $270,000 345,600 432,000 9% Compute the cost of the inventory on December 31, 2020, assuming that the inventory at retail is (a) $264,870 and (b) $328,635. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answers to 0 decimal places, e.g. 28,987.) (a)...
You assemble the following information for Sweet Department Store, which computes its inventory under the dollar-value LIFO method. Inventory on January 1, 2020 Purchases Increase in price level for year Cost Retail $187,200 $240,000 307,200 384,000 9% Compute the cost of the inventory on December 31, 2020, assuming that the inventory at retail is (a) $235,440 and (b) $292,120. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answers to O decimal places, e.g. 28,987.) (a)...
You assemble the following information for Swifty Department Store, which computes its inventory under the dollar-value LIFO method. Inventory on January 1, 2020 Purchases Increase in price level for year Cost Retail $561,600 $720,000 921,600 1,152,000 9% Compute the cost of the inventory on December 31, 2020, assuming that the inventory at retail is (a) $706,320 and (b) $876,360. (Round ratios for computational purposes to O decimal places, e.g. 78% and final answers to 0 decimal places, e.g. 28,987.) (a)...
You assemble the following information for Coronado Department Store, which computes its inventory under the dollar-value LIFO method. Cost Retail $420,000 $600,000 Inventory on January 1, 2020 Purchases 768,000 960,000 Increase in price level for year 9% Compute the cost of the inventory on December 31, 2020, assuming that the inventory at retail is (a) $588,600 and (b) $730,300. (Round ratios for computational purposes to O decimal places, e.g. 78% and final answers to 0 decimal places, e.g. 28,987.) $...
You assemble the following information for Splish Department Store, which computes its inventory under the dollar-value LIFO method. Inventory on January 1, 2020 Purchases Increase in price level for year Cost Retail $294,000 $420,000 537,600 672,000 9% Compute the cost of the inventory on December 31, 2020, assuming that the inventory at retail is (a) $412,020 and (b) $511,210. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answers to O decimal places, e.g. 28,987.) (a)...
You assemble the following information for Oriole Department Store, which computes its inventory under the dollar-value LIFO method. Inventory on January 1, 2020 Purchases Increase in price level for year Cost Retail $466,200 $630,000 806,400 1,008,000 9% Compute the cost of the inventory on December 31, 2020, assuming that the inventory at retail is (a) $618,030 and (b) $766,815. (Round ratios for computational purposes to O decimal places, e.g. 78% and final answers to O decimal places, e.g. 28,987.) (a)...
You assemble the following information for Swifty Department Store, which computes its inventory under the dollar-value LIFO method. Inventory on January 1, 2020 Purchases Increase in price level for year Cost Retail $250,800 $330,000 422,400 528,000 9% Compute the cost of the inventory on December 31, 2020, assuming that the inventory at retail is (a) $323,730 and (b) $401,665. (Round ratios for computational purposes to O decimal places, e.g. 78% and final answers to O decimal places, e.g. 28,987.) (a)...
You assemble the following information for Bridgeport Department Store, which computes its inventory under the dollar-value LIFO method. Cost Retail Inventory on January 1, 2020 $294,000 $420,000 Purchases 537,600 672,000 Increase in price level for year 9% Compute the cost of the inventory on December 31, 2020, assuming that the inventory at retail is (a) $412,020 and (b) $511,210. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answers to 0 decimal places, e.g. 28,987.) (a)...