To use the dollar-value LIFO retail method for inventory, the first step is to:

To use the dollar-value LIFO retail method for inventory, the first step is to:



A. Determine the estimated ending inventory at current year retail prices.
B. Determine the estimated cost of goods sold for the current year.
C. Determine the cost-to-retail percentage for the current year transactions.
D. Price index adjust the LIFO inventory layers.


Answer: C. Determine the cost-to-retail percentage for the current year transactions


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