Harlequin Co. has used the dollar-value LIFO retail method since it began operations in early 2020...

Harlequin Co. has used the dollar-value LIFO retail method since it began operations in early 2020 (its base year). Its beginning inventory for 2021 was $42,000 at cost and $78,000 at retail prices. At the end of 2021, it computed its estimated ending inventory at retail to be $132,000. Assuming its cost-to-retail percentage for 2021 transactions was 60%, what is the inventory balance that Harlequin Co. would report in its 12/31/2021 balance sheet?

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Ann Co. uses the dollar-value LIFO retail method. The beginning inventory, purchased when the price index...

Ann Co. uses the dollar-value LIFO retail method. The beginning inventory, purchased when the price index was 100, had a retail value of $4,000 and a cost of $3,600. During the period, purchases amounted to $60,000 at retail ($52,800 at cost). Sales amounted to $56,300. The year-end price index was 110. What is the cost of ending inventory?

On January 1, 2020, ECT Co. adopted the dollar-value LIFO method for its one inventory pool....

On January 1, 2020, ECT Co. adopted the dollar-value LIFO method for its one inventory pool. The pool's value on this date was $600 million. The 2020 and 2021 ending inventory valued at year-end costs were $702 million and $840 million, respectively. The appropriate cost indexes are 1.08 for 2020 and 1.20 for 2021. Required: Calculate the inventory balance that ECT Co. would report on its year-end balance sheets for 2020 and 2021, using the dollar-value LIFO method and submit...

Goddard Company has used the FIFO method of inventory valuation since it began operations in 2015....

Goddard Company has used the FIFO method of inventory valuation since it began operations in 2015. Goddard decided to change to the average cost method for determining inventory costs at the beginning of 2018. The following schedule shows year-end inventory balances under the FIFO and average cost methods: Year FIFO Average Cost 2015 $ 47,000 $ 58,000 2016 84,000 73,000 2017 91,000 84,000 Required: 1. Ignoring income taxes, prepare the 2018 journal entry to adjust the accounts to reflect the...

Goddard Company has used the FIFO method of inventory valuation since it began operations in 2015....

Goddard Company has used the FIFO method of inventory valuation since it began operations in 2015. Goddard decided to change to the average cost method for determining inventory costs at the beginning of 2018. The following schedule shows year-end inventory balances under the FIFO and average cost methods: Year FIFO Average Cost 2015 $ 46,300 $ 56,600 2016 81,900 72,300 2017 88,200 81,900 Required: 1. Ignoring income taxes, prepare the 2018 journal entry to adjust the accounts to reflect the...

Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2021. On that date, the...

Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2021. On that date, the cost of the inventory on hand was $20,000 and its retail value was $25,000. Information for 2021 and 2022 is as follows: Ending Inventory at Retail Retail Price Index Cost-to-Retail Percentage Date 12/31/2021 $ 35,000 1.25 82 % 12/31/2022 $ 42,000 1.40 85 % Required: 1. What is the cost-to-retail percentage for the inventory on hand at 1/1/2021? 2. Calculate the inventory value at...

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...

The dollar-value LIFO method was adopted by Blossom Corp. on January 1, 2020. Its inventory on...

The dollar-value LIFO method was adopted by Blossom Corp. on January 1, 2020. Its inventory on that date was $399,900. On December 31, 2020, the inventory at prices existing on that date amounted to $380,800. The price level at January 1, 2020, was 100, and the price level at December 31, 2020, was 112. On December 31, 2021, the inventory at prices existing on that date was $421,245, and the price level was 115. Compute the inventory on that date...

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...

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...

Subjects