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In: Accounting
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 1, 2016 1.00 December
31, 2016 1.06 December 31, 2017 1.10 Required: Estimate the 2016
and 2017 ending inventory and cost of goods sold using the
dollar-value LIFO retail inventory method. (Round your
cost-to-retail percentage calculation to 2 decimal places.
estimated ending inventory at retail 2016 2017
estimated ending inventory at cost
estimated cost of goods sold
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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, 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...
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...
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...
On January 1, 2018, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records...
On January 1, 2018, Sanderson Variety Store adopted the
dollar-value LIFO retail inventory method. Accounting records
provided the following information: Cost Retail Beginning inventory
$ 60,750 $ 81,000 Net purchases 243,090 335,000 Net markups 7,000
Net markdowns 9,000 Net sales 312,000 Retail price index, end of
year 1.04 Estimate ending inventory using the dollar-value LIFO
retail method.
On January 1, 2021, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records...
On January 1, 2021, Sanderson Variety Store adopted the
dollar-value LIFO retail inventory method. Accounting records
provided the following information:
Cost
Retail
Beginning inventory
$
43,800
$
73,000
Net purchases
169,940
295,000
Net markups
5,000
Net markdowns
7,000
Net sales
272,000
Retail price index, end of year
1.04
During 2022, purchases at cost and retail were $191,675 and
$348,500, respectively. Net markups, net markdowns, and net sales
for the year were $8,000, $9,000, and $305,000, respectively. The
retail price index...
On January 1, 2016, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this...
On January 1, 2016, Badger Inc. adopted the dollar-value LIFO
method. The inventory cost on this date was $114,000. The 2016
ending inventory, valued at year-end costs, was $165,000. The
relative cost index for this inventory in 2016 was 1.20.
Suppose that Badger's 2017 ending inventory, valued at year-end
costs, was $176,400 and that the relative cost index for this
inventory in 2017 was 1.26. In determining the inventory balance
should Badger report in its 12/31/17 balance sheet:
On January 1, 2016, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The following...
On January 1, 2016, the Brunswick Hat Company adopted the
dollar-value LIFO retail method. The following data are available
for 2016: 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, 12/31/16 1.20 Required:
Calculate the estimated ending inventory and cost of goods sold for
2016.
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