Dawson adopted the dollar-value LIFO retail inventory method on January 1, 2010.The following information for 2010 was taken from the company's records:
$\begin{array}{lll}
\text { Sales } && \$ 173,350 \
\text { Net markups } && 2,000 \
\text { Inventory, January 1, 2010 } &\$ 24,300 & 30,000 \
\text { Purchases } &147,740 & 180,000 \
\text { Net markdowns } & & 4,000
\end{array}$ The price index on January 1, 2010, was 100.On December 31, 2010, it was 105.
Required:
Compute the inventory value for December 31, 2010.

Question

Dawson adopted the dollar-value LIFO retail inventory method on January 1, 2010.The following information for 2010 was taken from the company's records:
 $\begin{array}{lll}
\text { Sales } && \$ 173,350 \
\text { Net markups } && 2,000 \
\text { Inventory, January 1, 2010 } &\$ 24,300 & 30,000 \
\text { Purchases } &147,740 & 180,000 \
\text { Net markdowns } &  & 4,000
\end{array}$ The price index on January 1, 2010, was 100.On December 31, 2010, it was 105.
Required:
Compute the inventory value for December 31, 2010.

Quizplus · Accepted Answer

The Answer of Dawson adopted the dollar-value LIFO retail inventory method on January 1, 2010.The following information for 2010 was taken from the company's records:
 $\begin{array}{lll}
\text { Sales } && \$ 173,350 \
\text { Net markups } && 2,000 \
\text { Inventory, January 1, 2010 } &\$ 24,300 & 30,000 \
\text { Purchases } &147,740 & 180,000 \
\text { Net markdowns } &  & 4,000
\end{array}$ The price index on January 1, 2010, was 100.On December 31, 2010, it was 105.
Required:
Compute the inventory value for December 31, 2010.

Dawson Adopted the Dollar-Value LIFO Retail Inventory Method on January