Question

Wildhorse Corporation began operations on January 1, 2020, with a beginning inventory of $33,720 at cost and $49,000 at retail. The following information relates to 2020.

Assume instead that Wildhorse decides to adopt the dollar-value LIFO retail method. The appropriate price indexes are 100 at January 1 and 110 at December 31. Compute the ending inventory to be reported in the balance sheet. (Round ratios for computational purposes to 2 decimal places, e.g. 78.72% and final answer to 0 decimal places, e.g. 28,987.)

		Retail
Net purchases ($108,400 at cost)		$150,200
Net markups		9,800
Net markdowns		5,000
Sales revenue		125,100

Answer 1

answer : ending inventory reported to balance sheet $51205 explanation dollar value LIFO cost retail inventory 1/1 2020 33720 49000 purchases 1,08,400 150200 markups 9800 deduct markdowns -5000 total (excluding Beginning inventory) (1,08,400 155000 total (including Beginning inventory) 1,42,120 204000 deduct sales -125100 ending inventory at retail 78900 ending inventory at for retail base year prices =78900/1.1 71727 cost to reail ratio (prior year) cost to retail ratio (current year) 68.82% 69.94% CY=171727-49000)*1.10*69.94% ending inventory at cost (rounded) 33720 17485 51205

note : since the answer is sensitive because round off factor is there so , please use the comment box for the further clarification