1460T_c09.qxd01:09:200609:04 AM Page458 EQA 458.Chapter 9 Inventories:Additional Valuation Issues Instructions Compute the cost of the 2007 ending inventory under both(a)the conventional retail method and (b)the LIFO retail method. (L0 8)*E9-24 (Dollar-Value LIFO Retail)You assemble the following information for Seneca Department Store, which computes its inventory under the dollar-value LIFO method. Cost Retail Inventory on January 1,2007 $216,000 $300,000 Purchases 364.800 480,000 Increase in price level for year 9% Instructions Compute the cost of the inventory on December 31,2007,assuming that the inventory at retail is (a)$294,300and(b)$365,150. (L0 8)*E9-25 (Dollar-Value LIFO Retail)Presented below is information related to Langston Hughes Corporation Price LIFO Index Cost Retail Inventory on December 31,2008, when dollar-value LIFO is adopted 100 $36,000 S74,500 Inventory,December 31,2009 110 100,100 Instructions Compute the ending inventory under the dollar-value LIFO method at December 31,2009.The cost-to- retail ratio for 2009 was 60%. (L0 8)*E9-26 (Conventional Retail and Dollar-Value LIFO Retail)Amiras Corporation began operations on January 1,2007,with a beginning inventory of $30,100 at cost and $50,000 at retail.The following infor- mation relates to 2007. Retail ⊕ Net purchases ($108,500 at cost) $150,000 Net markups 10,000 Net markdowns 5,000 Sales 126,900 Instructions (a)Assume Amiras decided to adopt the conventional retail method.Compute the ending inventory to be reported in the balance sheet. (b)Assume instead that Amiras 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. (L0 8)E9-27 (Dollar-Value LIFO Retail)Connie Chung Corporation adopted the dollar-value LIFO retail inventory method on January 1,2006.At that time the inventory had a cost of $54,000 and a retail price of $100,000.The following information is available. Year-End Inventory Current Year Year-End at Retail Cost-Retail Price Index 2006 $118,720 57% 106 2007 138.750 60% 111 2008 125350 61% 2009 162,500 58% 125 The price index at January 1,2006,is 100. Instructions Compute the ending inventory at December 31 of the years 2006-2009.Round to the nearest dollar. (LO 8)E9-28 (Change to LIFO Retail)John Olerud Ltd.,a local retailing concern in the Bronx,N.Y.,has decided to change from the conventional retail inventory method to the LIFO retail method starting on January 1,2008.The company recomputed its ending inventory for 2007 in accordance with the procedures nec- essary to switch to LIFO retail.The inventory computed was $212,600.Instructions Compute the cost of the 2007 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method. *E9-24 (Dollar-Value LIFO Retail) You assemble the following information for Seneca Department Store, which computes its inventory under the dollar-value LIFO method. Cost Retail Inventory on January 1, 2007 $216,000 $300,000 Purchases 364,800 480,000 Increase in price level for year 9% Instructions Compute the cost of the inventory on December 31, 2007, assuming that the inventory at retail is (a) $294,300 and (b) $365,150. *E9-25 (Dollar-Value LIFO Retail) Presented below is information related to Langston Hughes Corporation. Price LIFO Index Cost Retail Inventory on December 31, 2008, when dollar-value LIFO is adopted 100 $36,000 $ 74,500 Inventory, December 31, 2009 110 ? 100,100 Instructions Compute the ending inventory under the dollar-value LIFO method at December 31, 2009. The cost-to￾retail ratio for 2009 was 60%. *E9-26 (Conventional Retail and Dollar-Value LIFO Retail) Amiras Corporation began operations on January 1, 2007, with a beginning inventory of $30,100 at cost and $50,000 at retail. The following infor￾mation relates to 2007. Retail Net purchases ($108,500 at cost) $150,000 Net markups 10,000 Net markdowns 5,000 Sales 126,900 Instructions (a) Assume Amiras decided to adopt the conventional retail method. Compute the ending inventory to be reported in the balance sheet. (b) Assume instead that Amiras 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. *E9-27 (Dollar-Value LIFO Retail) Connie Chung Corporation adopted the dollar-value LIFO retail inventory method on January 1, 2006. At that time the inventory had a cost of $54,000 and a retail price of $100,000. The following information is available. Year-End Inventory Current Year Year-End at Retail Cost—Retail % Price Index 2006 $118,720 57% 106 2007 138,750 60% 111 2008 125,350 61% 115 2009 162,500 58% 125 The price index at January 1, 2006, is 100. Instructions Compute the ending inventory at December 31 of the years 2006–2009. Round to the nearest dollar. *E9-28 (Change to LIFO Retail) John Olerud Ltd., a local retailing concern in the Bronx, N.Y., has decided to change from the conventional retail inventory method to the LIFO retail method starting on January 1, 2008. The company recomputed its ending inventory for 2007 in accordance with the procedures nec￾essary to switch to LIFO retail. The inventory computed was $212,600. 458 • Chapter 9 Inventories: Additional Valuation Issues (L0 8) (L0 8) (L0 8) (L0 8) (L0 8) 1460T_c09.qxd 01:09:2006 09:04 AM Page 458