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In: Accounting
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 1.08
Required: Calculate the estimated ending inventory at retail and ending inventory at cost and cost of goods sold for 2018.
Solutions
Expert Solution
| Cost | Retail | |
| Beginning inventory | $ 72,900 | $ 135,000 |
| Plus: Net Purchases | $ 102,150 | $ 232,000 |
| Net Markup | $ 5,000 | |
| Less: Mark Down | $ (10,000) | |
| Goods Available For Sale (Excluding Beginning Inventory) | $ 102,150 | $ 227,000 |
| Goods Available For Sale (Including Beginning Inventory) | $ 175,050 | $ 362,000 |
| Base year cost-to retail % (72900/135000) | 54% | |
| 2011 cost-to retail %(102150/227000) | 45% | |
| Less Net Sales | $ (200,000) | |
| Estimated Ending Inventory at current year retail Prices | $ 162,000 | |
| Estimated Ending Inventory at Cost | $ 79,650 | |
| Estimated Cost of Goods Sold | $ 95,400 |
| Step1 | Step 2 | Step 3 | |
| Estimated Ending Inventory at year end retail price | Estimated Ending Inventory at base year Retail price | Inventory Layers At Base Year Retail Prices | Inventory Layers converted to cost |
| $ 162,000 | $ 150,000.00 | 135000 (Base) | $ 72,900 |
| (162000/1.08) | 15000( 2018) | $ 6,750 | |
| Total Ending Inventory | $ 79,650 | ||
ekkarill92 answered 3 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
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Net sales 229,000 Retail price index, 12/31/18 1.05 Required:
Calculate the estimated ending inventory and cost of goods sold for
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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
$
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
$
78,880
$
136,000
Net purchases
119,040
256,000
Net markups
6,000
Net markdowns
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Net sales
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Retail price index, 12/31/2021
1.10
Required:
Calculate the estimated ending inventory and cost of goods sold for
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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.)
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retail
_____
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