Terry company had january 1 inventory of $100,000 when it adopted dollar-value lifo. during the year, purchases were $600,000 and sales were $1,000,000. december 31 inventory at year-end prices was $143,360, and the price index was 112 (price index for base year = 100). what is terry’s ending inventory and gross profit, respectively

Terry's Closing Inventory is $131,360.

Terry's Gross profit is $431,360.

We follow these steps to arrive at the answers:

1. Calculate the base value of closing inventory (CI):

2. Calculate additions to inventory at base price

3. Calculate the value of additions to inventory at current prices

4. Calculate the value of Closing inventory

5. Compute Cost of Goods Sold (COGS):

6. Compute Gross profit

answer; is usually (less than) the socially optimal level of consumption;

answer; post closing trial balance;