Question

In: Accounting

On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both...

On January 1, 2021, Pet Friendly Stores adopted the 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 $ 128,000 $ 200,000
Purchases 435,000 585,000 $ 670,000 $ 843,000
Purchase returns 3,200 3,750 2,900 4,125
Freight-in 5,000 6,000
Net markups 5,300 9,200
Net markdowns 4,150 6,700
Net sales to customers 400,000 696,000
Sales to employees (net of 20% discount) 16,800 16,800
Normal spoilage 2,700 5,600
Price Index:
January 1, 2021 1.00
December 31, 2021 1.25
December 31, 2022 1.25

Problem 9-13 (Algo) Part 1

Required:
1.
Estimate the 2021 and 2022 ending inventory and cost of goods sold using the dollar-value LIFO retail method.

2021 2022
Estimated ending inventory at retail $ $
Estimated ending inventory at cost $ $
Estimated cost of goods sold $ $

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