Dollar Value LIFO Retail The Johns Company adopts the dollar value LIFO retail inventory method on January 1, 2007. The following information for 2007 is obtained from the company’s records:
|
Cost |
Retail |
|
|
Inventory, January 1, 2007 |
$20,000 |
$29,000 |
|
Purchases |
60,000 |
92,000 |
|
Net markups |
— |
1,000 |
|
Net markdowns |
— |
3,000 |
|
Sales |
— |
75,000 |
The price index on January 1, 2007 was 100 and on December 31, 2007 it was 110.
Required
Compute the cost of the inventory on December 31, 2007.