Compute the cost of the ending inventory for 2007, 2008, and 2009.
Dollar-Value LIFO Retail – The following information is obtained from the records of the Burger Company, which uses the dollar-value LIFO retail method:
2007
2008
2009
Cost
Retail
Retail
Retail
Cost
Retail
Purchases
$200,000
$420,000
$420,000
$550,000
$240,000
$500,000
Net markups
20,000
20,000
30,000
10,000
Net markdowns
10,000
10,000
40,000
20,000
Sales
400,000
400,000
600,000
450,000
The company adopted LIFO on January 1, 2007, when the cost and retail values of the inventory were $50,000 and $100,000, respectively. The following price indexes were experienced by the Burger Company:
1-Jan-07
100
31-Dec-08
115
31-Dec-07
108
31-Dec-09
120
Required
Compute the cost of the ending inventory for 2007, 2008, and 2009.
