Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 9 - Inventories: Additional Valuation Issues - Concepts for Analysis - Page 540: CA9-7(7)

Answer

Estimated retail value of goods broken or stolen would not be considered in the cost to retail under both conventional method or LIFO method.

Work Step by Step

However, if the value of the goods broken/stolen are abnormal shrinkage, they are deducted from both the retail and cost columns.
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