Shamrock Inc. had beginning inventory of $12,017 at cost and $19,700 at retail.

Question

Shamrock Inc. had beginning inventory of $12,017 at cost and $19,700 at retail. Net purchases were $112,000 at cost and $174,400 at retail. Net markups were $9,100, net markdowns were $7,400, and sales revenue was $160,500. Assume the price level increased from 100 at the beginning of the year to 105 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, eg, 28,987.) Ending inventory using the dollar-value LIFO retail method Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Cost Retails Begning Inventory                        12,017                    19,700 Net purchases                      112,000                  174,400 Net markups                       9,100 Totals                      124,017                  203,200 Deduct Net Markdowns                       7,400 Sales Revenue                  160,500 Ending inventory at retail                    35,300 Cost-to-retail ratio: $124,017 ÷ $203,200 = 61.03% Ending inventory at lower-of cost-or-market (61.03% X $35,300) = $21,544.29

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