Question
In: Accounting
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 |
Current Year |
Year End |
|||||
| 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 years
2019–2022.
Solutions
Expert Solution
| YEAR 2019 | ||
| S. No. | Amount | |
| 1 | Ending Year Inventory at retail (Current Index) | 119780 |
| 2 | Ending Year Inventory at retail (Base Index ) (119780/1.06) | 113000 |
| 3 | Beginning inventory at retail, base | 100000 |
| 4 | Increase at retail (base index) (2-3) | 13000 |
| 5 | Increase at retail (Current index) (13000*1.06) | 13780 |
| 6 | Increase at cost (Current index) 13780*60% | 8268 |
| 7 | Beginning inventory cost | 52000 |
| 8 | Dollar Value Retail LIFO ending inventory (6+7) | 60268 |
| YEAR 2020 | ||
| S. No. | Amount | |
| 1 | Ending Year Inventory at retail (Current Index) | 147400 |
| 2 | Ending Year Inventory at retail (Base Index ) (147400/1.10) | 134000 |
| 3 | Beginning inventory at retail, base | 113000 |
| 4 | Increase at retail (base index) (2-3) | 21000 |
| 5 | Increase at retail (Current index) (21000*1.10) | 23100 |
| 6 | Increase at cost (Current index) 23100*63% | 14553 |
| 7 | Beginning inventory cost | 52000 |
| 8 | Dollar Value Retail LIFO ending inventory (6+7) | 66553 |
| YEAR 2021 | ||
| S. No. | Amount | |
| 1 | Ending Year Inventory at retail (Current Index) | 124260 |
| 2 | Ending Year Inventory at retail (Base Index ) (124260/1.14) | 109000 |
| 3 | Beginning inventory at retail, base | 134000 |
| 4 | Increase at retail (base index) (2-3) | -25000 |
| 5 | Increase at retail (Current index) (-25000*1.14) | -28500 |
| 6 | Increase at cost (Current index) 28500*64% | -18240 |
| 7 | Beginning inventory cost | 66553 |
| 8 | Dollar Value Retail LIFO ending inventory (6+7) | 48313 |
| YEAR 2022 | ||
| S. No. | Amount | |
| 1 | Ending Year Inventory at retail (Current Index) | 148750 |
| 2 | Ending Year Inventory at retail (Base Index ) (148750/1.25) | 119000 |
| 3 | Beginning inventory at retail, base | 109000 |
| 4 | Increase at retail (base index) (2-3) | 10000 |
| 5 | Increase at retail (Current index) (10000*1.25) | 12500 |
| 6 | Increase at cost (Current index) 12500*61% | 7625 |
| 7 | Beginning inventory cost | 48313 |
| 8 | Dollar Value Retail LIFO ending inventory (6+7) | 55938 |
ekkarill92 answered 1 year agoRelated Solutions
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...
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...
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...
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...
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
The price index on January 1, 2016, was 100, and on December 31,
2016, it was 110.
Required:
Compute the cost of the inventory on December 31, 2016. Round
the cost-to-retail...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- (2) Cite an example on how organizations like Google, Facebook, Youtube etc collect data for image...
- The legal landscape is perpetually changing. Psychologists must remain abreast of these changes to avoid potentially...
- We are evaluating a project that costs $1.68 million, has a six-year life, and has no...
- In C++ Having call-by-reference allows one to use storeback parameters, i.e., parameters whose values are transmitted...
- You must evaluate a proposal to buy a new milling machine. The base price is $175,000,...
- “Triangle Guessing” game in Python The program accepts the lengths of three (3) sides of a...
- THIS PROGRAM HAS TO BE WRITTEN IN C Single function to perform the parity computation on...
ADVERTISEMENT