Conventional Retail and Dollar-Value LIFO Retail Mander Corporation began operations on January 1, 2010, with a beginning inventory of $34,300 at cost and $50,000 at retail. The following information relates to 2010.
(a) Assume Mander decided to adopt the conventional retail method. Compute the ending inventory to be reported in the balance sheet.
(b) Assume instead that Mander decides to adopt the dollar-value LIFO retail method. The appropriate price indexes are 100 at January 1 and 110 at December 31. Compute the ending inventory to be reported in the balance sheet.
(c) On the basis of the information in part (b), compute cost of goods sold.
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