The Jensen Store Has the Following Data for Inventory The Store Uses the Dollar-Value LIFO Retail Method

question 102

Multiple Choice

The Jensen Store has the following data for inventory: $$\begin{array} { | l | r | r | } \hline & \text { Cost } & \text { Retail } \\\hline \text { Inventory, January 1 } & \$ 230,000 & \$ 350,000 \\\hline \text { Purchases for January } & 370,000 & 480,000 \\\hline \text { Sales for January } & & 430,000 \\\hline\end{array}$$
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) $400,000
• B) $600,000
• C) $910,000
• D) $830,000

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Definitions:

Direct Labor Time Variance

The difference between the estimated time to produce a good and the actual time taken, often used in cost accounting.

Actual Costs

Actual costs are the expenses that a company incurs for producing goods or services, including materials, labor, and overhead, as opposed to estimated or budgeted costs.

Standard Costs

The predetermined costs of manufacturing a product or providing a service, used as benchmarks against actual costs.

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit of material.