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AE9-25 - (Round answer to 0 decimal places e.g 12,250...

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AE9-25 Correct. (Dollar-Value LIFO Retail) Presented below is information related to Atrium Corporation. Price Index LIFO Cost Retail Inventory on December 31, 2010, when dollar-value LIFO is adopted 100 $38,160 $78,970 Inventory, December 31, 2011 110 ? 106,106 Compute the ending inventory under the dollar-value LIFO method at December 31, 2011. The cost-to-retail ratio for 2011 was 60%.
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Unformatted text preview: (Round answer to 0 decimal places, e.g. 12,250.) Ending inventory at retail (deflated) $106,106 ÷ 1.10 $96,460 Beginning inventory at retail (78,970) Increment at retail $17,490 Ending inventory on LIFO basis Cost First layer $38,160 Second layer ($17,490 × 1.10 × 60%) 11,543 $49,703...
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