The Jensen Store Has the Following Data for Inventory

question 25

Multiple Choice

The Jensen Store has the following data for inventory: 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

---

Definitions:

Price Level

The Price Level is a measure of the average prices of goods and services in an economy at a specific time.

Percentage Change

A mathematical calculation that represents the degree of change over time, expressed as a fraction of the original value.

Nominal GDP

The market value of all final goods and services produced within a country in a year, measured in current prices.

GDP Deflator

An appraisal method for the prices of all newly developed, domestically produced, consumable goods and services in an economy.