Compute the cost of the inventory on december

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Reference no: EM13872457

Purpose: This exercise will illustrate the use of the dollar-value LIFO retail method when there is: (a) a decrease in inventory and (b) an increase in inventory.

You assemble the following information for Henrietta's Department Store, which computes its inventory under the dollar-value LIFO retail method.


Cost

Retail

Inventory on January 1, 2014

$227,200

$320,000

Purchases

340,400

460,000

Purchases


8%

Instructions

(a) Compute the cost of the inventory on December 31, 2014, assuming that the ending inventory at retail is $286,200.

(b) Compute the cost of the inventory on December 31, 2014, assuming that the ending inventory at retail is $351,000.

Reference no: EM13872457

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