To determine the value of a LIFO layer, using dollar-value LIFO retail:

To determine the value of a LIFO layer, using dollar-value LIFO retail:




A.Divide the LIFO layer by the layer-year price index and multiply by the layer-year cost-to-retail percentage.
B. Multiply the LIFO layer by the base year price index and the current year cost-to-retail percentage.
C. Multiply the LIFO layer by the layer-year price index and by the layer-year cost-to-retail percentage.
D.Divide the LIFO layer by the layer-year cost-to-retail percentage and multiply by the layer-year price index.


Answer: C. Multiply the LIFO layer by the layer-year price index and by the layer-year cost-to-retail percentage.


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