Ann Co Uses the Dollar-Value LIFO Retail Method

question 130

Multiple Choice

Ann Co. uses the dollar-value LIFO retail method. The beginning inventory, purchased when the price index was 100, had a retail value of $4,000 and a cost of $3,600. During the period, purchases amounted to $60,000 at retail $52,800 at cost) . Sales amounted to $56,300. The year-end price index was 110. What is the cost of ending inventory?

• A) $6,240
• B) $6,504
• C) $6,570
• D) $6,900