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.