Question

In: Accounting

Company ABC uses the last-in, first-out (LIFO) dollar value retail inventory method. It adopted this method...

Company ABC uses the last-in, first-out (LIFO) dollar value retail inventory method. It adopted this method at the beginning of this year. The cost index for the year was 1.12. Below is information for the first year. Cost Retail BI 1082.0 1542.0 Net purchases 3462.4 5088.6 Net Sales 0.0 4579.7 Ending inventory at retail is: Answer The cost to retail conversion for beginning inventory is (round to at least 3 decimal points): Answer The cost to retail conversion for the layer added is (round to at least 3 decimal points): Answer Ending inventory at cost is: Answer Cost of goods sold is: Answer

Solutions

Expert Solution

Ans. Particulars Cost Retail
Beginning inventory 1082 1542
Add: Net purchases 3462.4 5088.6
Goods available for sale (excluding beginning inventory) 3462.4 5088.6
Goods available for sale (including beginning inventory) 4544.4 6630.6
Less: net sales -4579.7
Estimated ending inventory at current year retail prices 2050.9
Estimated ending inventory at cost 1300
Estimated cost of goods sold   (4544.4 - 1300) 3244 rounded
Base year cost-to-retail percentage                  =                     1082 / 1542 * 100
70%
2018 cost-to-retail percentage                             =                    3462.4 / 5088.6 * 100
68%
*Calculation of estimated ending inventory at cost:
Ending inventory at retail price   =   2050.9
Ending inventory at base year retail price   =   Ending inventory at retail / price index
2050.9 / 1.12
1831.161
Inventory layers at base year retail prices: (converted to cost)
1542 * 1 * 70% 1079.4
(1831.161 - 1542) * 1.12 * 68% 220.2250176
Total ending inventory at cost 1300

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

On January 1, 2021, the Coldstone Corporation adopted the dollar-value LIFO retail inventory method. Beginning inventory...
On January 1, 2021, the Coldstone Corporation adopted the dollar-value LIFO retail inventory method. Beginning inventory at cost and at retail were $180,000 and $282,000, respectively. Net purchases during the year at cost and at retail were $604,500 and $920,000, respectively. Markups during the year were $10,000. There were no markdowns. Net sales for 2021 were $900,000. The retail price index at the end of 2021 was 1.04. What is the inventory balance that Coldstone would report in its 12/31/2021...
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...
Kingbird Corporation adopted the dollar-value LIFO retail inventory method on January 1, 2016. At that time...
Kingbird Corporation adopted the dollar-value LIFO retail inventory method on January 1, 2016. At that time the inventory had a cost of $57,000 and a retail price of $100,000. The following information is available. Year-End Inventory at Retail Current Year Cost—Retail % Year End Price Index 2016 $133,560 56% 106 2017 146,520 59% 111 2018 124,120 60% 116 2019 168,750 57% 125 The price index at January 1, 2016, is 100. Compute the ending inventory at December 31 of the...
Marin Corporation adopted the dollar-value LIFO retail inventory method on January 1, 2019. At that time...
Marin Corporation adopted the dollar-value LIFO retail inventory method on January 1, 2019. At that time the inventory had a cost of $52,000 and a retail price of $100,000. The following information is available. Year-End Inventory at Retail Current Year Cost—Retail % Year End Price Index 2019 $119,780 60% 106 2020 147,400 63% 110 2021 124,260 64% 114 2022 148,750 61% 125 The price index at January 1, 2019, is 100. Compute the ending inventory at December 31 of the...
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, 2021, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions...
On January 1, 2021, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2021 and 2022 are as follows: 2021 2022 Cost Retail Cost Retail Beginning inventory $ 31,200 $ 48,000 Net purchases 82,720 112,000 $ 90,275 $ 118,800 Freight-in 2,400 2,900 Net markups 12,000 8,800 Net markdowns 2,400 2,600 Net sales to customers 109,815 104,960 Sales to employees (net of 20% discount) 2,900 4,640 Price Index: January...
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 $ 58,500 $ 78,000 Net purchases 110,180 127,000 $ 115,808 $ 133,100 Freight-in 3,900 4,400 Net markups 19,500 11,800 Net markdowns 3,900 4,100 Net sales to customers 125,380 119,140 Sales to employees (net of 20% discount) 3,600 6,000 Price Index: January...
On January 1, 2016, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions...
On January 1, 2016, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2016 and 2017 are as follows: 2016 2017 Cost Retail Cost Retail Beginning inventory $ 51,800 $ 74,000 Net purchases 101,150 125,000 $ 107,532 $ 131,700 Freight-in 3,700 4,200 Net markups 18,500 11,400 Net markdowns 3,700 3,900 Net sales to customers 125,250 118,800 Sales to employees (net of 20% discount) 3,000 6,720 Price Index: January...
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...
Olson Company adopted the dollar-value LIFO method for inventory valuation at the beginning of 2015. The...
Olson Company adopted the dollar-value LIFO method for inventory valuation at the beginning of 2015. The following information about the inventory at the end of each year is available from Olson's records: Year Current Costs Index 2014 $50,000 100 2015 60,000 108 2016 70,000 115 2017 73,000 125 2018 78,000 135 Required: 1. Calculate the dollar-value LIFO inventory at the end of each year. Do not round your intermediate calculations. Round final answers to the nearest dollar. 2015 2016 2017...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT