Question
In: Accounting
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-
Solutions
Expert Solution
| Calculation of Inventory at retail | Cost | Retail | |
| Beginning | 73,150.00 | 1,33,000.00 | |
| ADD: Net purchase | 1,13,400.00 | 2,57,000.00 | |
| ADD: Markup | 8,000.00 | ||
| Less: Markdown | -13,000.00 | ||
| Goods Available for sale Excluding beginning | 1,13,400.00 | 2,52,000.00 | |
| Goods Available for sale Inluding beginning | 1,86,550.00 | 3,85,000.00 | |
| Base year cost to retail percentage | 55.00% | ||
| Current year cost to retail percentage | 45.00% | ||
| Less: Net sales | -2,24,000.00 | ||
| Estimated ending inventory at current year retail prices | 1,61,000.00 | ||
| Ending Inventory AT year end at retail Price | Layers at retial price | Cost to retail Prices | |
| 1,61,000.00 | 1,33,000.00 | 73,150.00 | |
| 28,000.00 | 12,600.00 | ||
| Total | |||
| 1,61,000.00 | 1,61,000.00 | 85,750.00 | |
| A) | Ending Inventory at retail | 161000 | |
| B | Ending Inventory at cost | 85,750.00 | |
| C | Cost of Goods Sold | 1,00,800.00 | (186550-85750) |
ekkarill92 answered 2 years agoRelated Solutions
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, 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
$
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
$
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, 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
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Net sales 228,000 Retail price index, 12/31/16 1.20 Required:
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On January 1, 2018, the Brunswick Hat Company adopted thedollar-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 $ 72,900 $ 135,000 Net
purchases 102,150 232,000 Net markups 5,000 Net markdowns 10,000
Net sales 200,000 Retail price index, 12/31/18 1.08Required: Calculate the estimated ending inventory at retail and
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On January 1, 2018, the Coldstone Corporation adopted the dollar-value LIFO retail inventory method. Beginning inventory...
On January 1, 2018, the Coldstone Corporation adopted the
dollar-value LIFO retail inventory method. Beginning inventory at
cost and at retail were $180,000 and $292,950, respectively. Net
purchases during the year at cost and at retail were $736,000 and
$911,000, respectively. Markups during the year were $9,000. There
were no markdowns. Net sales for 2018 were $878,000. The retail
price index at the end of 2018 was 1.05. What is the inventory
balance that Coldstone would report in its 12/31/2018...
On January 1, 2018, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions...
On January 1, 2018, HGC Camera Store adopted the dollar-value
LIFO retail inventory method. Inventory transactions at both cost
and retail, and cost indexes for 2018 and 2019 are as follows: 2018
2019 Cost Retail Cost Retail Beginning inventory $ 42,000 $ 60,000
Net purchases 94,500 118,000 $ 108,108 $ 133,200 Freight-in 3,000
3,500 Net markups 15,000 10,000 Net markdowns 3,000 3,200 Net sales
to customers 117,360 119,890 Sales to employees (net of 10%
discount) 3,600 6,300 Price Index: January...
On January 1, 2018, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records...
On January 1, 2018, Sanderson Variety Store adopted the
dollar-value LIFO retail inventory method. Accounting records
provided the following information: Cost Retail Beginning inventory
$ 60,750 $ 81,000 Net purchases 243,090 335,000 Net markups 7,000
Net markdowns 9,000 Net sales 312,000 Retail price index, end of
year 1.04 Estimate ending inventory using the dollar-value LIFO
retail method.
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