Harlequin Co

question 17

Multiple Choice

Harlequin Co. has used the dollar-value LIFO retail method since it began operations in early 2017 (its base year) . Its beginning inventory for 2018 was $36,000 at cost and $72,000 at retail prices. At the end of 2018, it computed its estimated ending inventory at retail to be $120,000. Assuming its cost-to-retail percentage for 2018 transactions was 60%, what is the inventory balance that Harlequin Co. would report in its 12/31/2018 balance sheet?

• A) $64,800.
• B) $72,000.
• C) $120,000.
• D) The balance can't be determined with the given information.

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Definitions:

Spontaneous Abortion

Refers to the natural end of a pregnancy before the fetus can survive outside the womb, often known as a miscarriage.

Gestation

The period of time between the fertilization of an egg and the birth of an organism, commonly used in reference to pregnancies.

Malnutrition

A condition resulting from an imbalanced diet in which nutrients are either insufficient or excessive, leading to health problems.

Nutrients

Substances obtained from food necessary for growth, metabolism, and overall health maintenance.