Inventory value of Cold stone Corporation as on 31/12/2021 is $ 58,600 at cost value and $61,530 at retail value
Explanation:
In the United Kingdom, Retail price index is a measure of inflation published monthly by the Office for National Statistics. It measures the change in the cost of a representative sample of retail goods and services.
LIFO - last in first out method .,means the inventory purchased in last will be sold first.
opening inventory and closing inventory always calculated at cost price only
Cost of sales = sales- markup
= $846,000 - $11,000 = $835,000
Closing inventory value
= cost of sales - purchases - opening inventory
= $835,000 - $693,600 = $141,400 - $200,000 =$ 58,600
Retail value of inventory on 31/12/2021
= $ 58,600×1.05= $61,530
