Andra Company Uses the Dollar-Value LIFO Retail Inventory Method for Inventory

question 68

Essay

Andra Company uses the dollar-value LIFO retail inventory method for inventory costing. Andra Company has beginning inventory with a cost of $10,000 and a retail value of $40,000. During the year, the company purchases goods with a cost basis of $80,000 and a retail basis of $100,000. It has net markups of $10,000 and net markdowns of $5,000. Sales are $50,000 at retail.
The price index for the current year is 1.04. Andra Company adopted the dollar-value LIFO method at the end of the prior year, which is the base year with a price index of 1.00.
Required:
What is the cost of the ending inventory using the dollar-value LIFO retail inventory method? Round all ratios to four decimal places. Round all numbers to two decimal places.