The Jensen Store has the following data for inventory:
Cost
Retail
Inventory, January 1
$227,200
$320,000
Purchases for January
340,400
460,000
Sales for January
429,000
The store uses the dollar-value LIFO retail method. The price index for the year is 1.08. The price index that pertains to the beginning inventory is 1.00. What is the retail value of the ending inventory at January 31?
A) $351,000
B) $567,600
C) $138,600
D) $780,000
Answer: A
Explanation: A) $320,000 + $460,000 - $429,000
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