Question

Boyne Inc. had beginning inventory of $12,060 at cost and $20,100 at retail. Net purchases were $128,030 at cost and $198,000 at retail. Net markups were $12,100; net markdowns were $7,200; and sales revenue was $151,300. Assume the price level increased from 100 at the beginning of the year to 118 at year-end. Compute ending inventory at cost using the dollar-value LIFO retail method. (Round ratios for computational purposes to 1 decimal place, e.g. 78.7% and final answer to 0 decimal places, e.g. 28,987.)

Ending inventory using the dollar-value LIFO retail method _____$

Use the information for boyne inc. from be9.10, and assume the price level increased from 100 at the beginning of the year to 115 at year-end. compute ending inventory at cost using the dollar-value lifo retail method.

Answer 1

To compute the ending inventory at cost using the dollar-value LIFO retail method, follow these steps: determine the ending inventory at retail value, calculate the cost-to-retail ratio, and multiply the ending inventory at retail value by the cost-to-retail ratio.

Step-by-step explanation:

To compute the ending inventory at cost using the dollar-value LIFO retail method, we need to follow these steps:

1. Determine the ending inventory at retail value. This can be calculated by subtracting the net sales revenue from the beginning inventory plus the net purchases, minus the net markups and plus the net markdowns.

2. Calculate the cost-to-retail ratio. This is the ratio of the cost of beginning inventory plus net purchases minus net markups, to the retail value of beginning inventory plus net purchases minus net markdowns.

3. Multiply the ending inventory at retail value by the cost-to-retail ratio to find the ending inventory at cost value.

Using the given information, the ending inventory at cost using the dollar-value LIFO retail method is $96,498.