E9-24B (Dollar-Value LIFO Retail) You assemble the following information for Henderson Department Store, which computes its inventory under the dollar-value LIFO method.

E9-24B (Dollar-Value LIFO Retail) You assemble the following information for Henderson Department Store, which computes its inventory under the dollar-value LIFO method.

                                                     Cost              Retail

Inventory on January 1, 2014  $420,000        $600,000

Purchases                                  720,000          960,000

Increase in price level for year                           5%

Instructions

Compute the cost of the inventory on December 31, 2014, assuming that the inventory at retail is (a)

$619,500 and (b) $745,500.