Under the Dollar-Value LIFO Retail Method, to Determine the Value

Multiple Choice

Under the dollar-value LIFO retail method, to determine the value of a LIFO layer:

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.