Question
In: Economics
PLEASE explain how to get the answer Dollar-Value LIFO Retail The following information is obtained from...
PLEASE explain how to get the answer
Dollar-Value LIFO Retail
The following information is obtained from Burger Company's records. Burger uses the dollar-value LIFO retail method.
| 2019 | 2020 | 2021 | ||||||
| Cost | Retail | Cost | Retail | Cost | Retail | |||
| Purchases | $202,400 | $430,000 | $238,500 | $540,000 | $240,100 | $500,000 | ||
| Net additional markups | — | 20,000 | — | 30,000 | — | 10,000 | ||
| Net markdowns | — | 10,000 | — | 40,000 | — | 20,000 | ||
| Sales | — | 400,000 | — | 650,000 | — | 450,000 | ||
The company adopted LIFO on January 1, 2019, when the cost and retail values of the inventory were $40,000 and $100,000, respectively. Burger experienced the following price indexes:
| January 1, 2019 | 100 | December 31, 2020 | 115 | |
| December 31, 2019 | 108 | December 31, 2021 | 120 |
Required
Compute the cost of the ending inventory for 2019. Round the cost-to-retail ratio out to three decimal places. Round computations and final answers to the nearest dollar.
| BURGER COMPANY | ||
| Calculation of ending inventory by Dollar-Value LIFO Retail inventory method | ||
| 2019 | ||
| Cost | Retail | |
| $ | $ | |
| $ | $ | |
| $ | $ | |
| Ending inventory at retail | $ | |
| Ending inventory at cost | $ | |
Compute the cost of the ending inventory for 2020. Round the cost-to-retail ratio out to three decimal places. Round computations and final answers to the nearest dollar.
| BURGER COMPANY | ||
| Calculation of ending inventory by Dollar-Value LIFO Retail inventory method | ||
| 2020 | ||
| Cost | Retail | |
| $ | $ | |
| $ | $ | |
| $ | $ | |
| $ | $ | |
| Ending inventory at retail | $ | |
| Ending inventory at cost | $ | |
Compute the cost of the ending inventory for 2021. Round the cost-to-retail ratio out to three decimal places. Round computations and final answers to the nearest dollar.
| BURGER COMPANY | ||
| Calculation of ending inventory by Dollar-Value LIFO Retail inventory method | ||
| 2021 | ||
| Cost | Retail | |
| $ | $ | |
| $ | $ | |
| $ | $ | |
| $ | $ | |
| Ending inventory at retail | $ | |
| Ending inventory at cost | $ | |
Solutions
Rahul Sunny answered 10 months agoRelated Solutions
Dollar-Value LIFO Retail Johns Company adopts the dollar-value LIFO retail inventory method on January 1, 2016....
Dollar-Value LIFO Retail
Johns Company adopts the dollar-value LIFO retail inventory
method on January 1, 2016. The following information for 2016 is
obtained from Johns' records:
Cost
Retail
Inventory, January 1, 2016
$20,000
$29,000
Purchases
60,000
92,000
Net additional markups
—
1,000
Net markdowns
—
3,000
Sales
—
75,000
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2016, it was 110.
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On January 1, 2018, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The following...
On January 1, 2018, the Brunswick Hat Company adopted the
dollar-value LIFO retail method. The following data are available
for 2018: Cost Retail Beginning inventory $ 72,420 $ 142,000 Net
purchases 107,100 264,000 Net markups 6,000 Net markdowns 15,000
Net sales 229,000 Retail price index, 12/31/18 1.05 Required:
Calculate the estimated ending inventory and cost of goods sold for
2018.
On January 1, 2021, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The following...
On January 1, 2021, the Brunswick Hat Company adopted the
dollar-value LIFO retail method. The following data are available
for 2021:
Cost
Retail
Beginning inventory
$
78,880
$
136,000
Net purchases
119,040
256,000
Net markups
6,000
Net markdowns
14,000
Net sales
230,000
Retail price index, 12/31/2021
1.10
Required:
Calculate the estimated ending inventory and cost of goods sold for
2021 using the information provided. (Do not round
intermediate calculations.)
Ending inventory at retail
154000
ending inventory at cost
?
cost...
On January 1, 2018, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The following...
On January 1, 2018,
the Brunswick Hat Company adopted the dollar-value LIFO retail
method. The following data are available for 2018:
Cost
Retail
Beginning
inventory
$
84,600
$
141,000
Net
purchases
129,500
264,000
Net markups
5,000
Net
markdowns
10,000
Net sales
229,000
Retail price
index, 12/31/18
1.20
Required:
Calculate the estimated ending inventory and cost of goods sold for
2018.
171000
Ending inventory at retail
Ending inventory at cost
Cost of goods sold
On January 1, 2018, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The following...
On January 1, 2018, the Brunswick Hat Company adopted the
dollar-value LIFO retail method. The following data are available
for 2018:
Cost
Retail
Beginning inventory
$
73,150
$
133,000
Net purchases
113,400
257,000
Net markups
8,000
Net markdowns
13,000
Net sales
224,000
Retail price index, 12/31/18
1.12
Required:
Calculate the estimated ending inventory and cost of goods sold for
2018.
1.Ending inventory at retail-
2.Ending inventory at cost-
3.Cost of goods sold-
On January 1, 2018, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The following...
On January 1, 2018, the Brunswick Hat Company adopted the
dollar-value LIFO retail method. The following data are available
for 2018:
Cost
Retail
Beginning inventory
$
81,000
$
150,000
Net purchases
121,500
278,000
Net markups
8,000
Net markdowns
16,000
Net sales
228,000
Retail price index,
12/31/18
1.20
Required:
Calculate the estimated ending inventory and cost of goods sold for
2018.
On January 1, 2021, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The following...
On January 1, 2021, the Brunswick Hat Company adopted the
dollar-value LIFO retail method. The following data are available
for 2021:
Cost
Retail
Beginning inventory
$
81,760
$
146,000
Net purchases
123,360
265,000
Net markups
4,000
Net markdowns
12,000
Net sales
238,000
Retail price index, 12/31/2021
1.10
Required:
Calculate the estimated ending inventory and cost of goods sold for
2021 using the information provided. (Do not round
intermediate calculations.)
Ending inventory at
retail
_____
Ending inventory at cost
_____
Cost...
On January 1, 2016, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The following...
On January 1, 2016, the Brunswick Hat Company adopted the
dollar-value LIFO retail method. The following data are available
for 2016: Cost Retail Beginning inventory $ 81,000 $ 150,000 Net
purchases 121,500 278,000 Net markups 8,000 Net markdowns 16,000
Net sales 228,000 Retail price index, 12/31/16 1.20 Required:
Calculate the estimated ending inventory and cost of goods sold for
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On January 1, 2021, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information:
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Estimate ending inventory using the dollar-value LIFO retail method and the information provided.
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