Dollar Value LIFO Retail On December 31, 2006 Davison Company adopted the dollar value LIFO retail inventory method. Inventory data for 2007 are as follows:
|
LIFO Cost |
Retail |
|
|
Inventory, 12/31/06 |
$360,000 |
$500,000 |
|
Inventory, 12/31/07 |
? |
660,000 |
|
Increase in price level for 2007 |
10% |
|
|
Cost to retail ratio for 2007 |
70% |
Required
Compute the cost of Davison Company’s inventory at December 31, 2007.