Exercise 9-27 Presented below is information related to Sandhill Corporation. Price Index LIFO Cost Retail Inventory...

Exercise 9-27

Presented below is information related to Sandhill Corporation. Price Index LIFO Cost Retail Inventory on December 31, 2017, when dollar-value LIFO is adopted 100 $36,600 $69,100 Inventory, December 31, 2018 110 ? 95,260 Compute the ending inventory under the dollar-value LIFO method at December 31, 2018. The cost-to-retail ratio for 2018 was 60%. Ending inventory under the dollar-value LIFO method at December 31, 2018

Solutions

Expert Solution

Computation of ending Inventory under LIFO Method at December 31, 2018:

First Layer	=	$ 36,600
Second Layer	=	$ 11,550
Ending Inventory at December 31, 2018	=	$ 48,150

At retail:
Ending Inventory ($95260/1.10)	=	$ 86,600
Less: Beginning Inventory	=	$ 69,100
Incremental Difference	=	$ 17,500

Under LIFO:
Second Layer	=	$17500 X 1.10 X 60%
	=	$ 11,550

ekkarill92 answered 6 months ago

Next > < Previous

Related Solutions

Exercise 9-19 Presented below is information related to Ricky Henderson Company. Cost Retail Beginning inventory $...

Exercise 9-19 Presented below is information related to Ricky Henderson Company. Cost Retail Beginning inventory $ 217,874 $ 287,700 Purchases 1,438,000 2,142,000 Markups 95,200 Markup cancellations 16,000 Markdowns 40,100 Markdown cancellations 5,700 Sales revenue 2,256,000 Compute the inventory by the conventional retail inventory method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.) Ending inventory using conventional retail inventory method

Exercise 11-9 Presented below is information related to Crane Manufacturing Corporation. Asset Cost Estimated Salvage Estimated...

Exercise 11-9 Presented below is information related to Crane Manufacturing Corporation. Asset Cost Estimated Salvage Estimated Life (in years) A $48,195 $6,545 10 B 39,984 5,712 9 C 42,840 4,284 9 D 22,610 1,785 7 E 27,965 2,975 6 Compute the rate of depreciation per year to be applied to the plant assets under the composite method. (Round answer to 2 decimal place, e.g. 4.83%.) Composite rate %

Presented below is information related to Flounder Company. Cost Retail Beginning inventory $ 62,430 $90,900 Purchases...

Presented below is information related to Flounder Company. Cost Retail Beginning inventory $ 62,430 $90,900 Purchases (net) 113,840 183,000 Net markups 9,421 Net markdowns 26,181 Sales revenue 182,600 Compute the ending inventory at retail. Ending inventory $ Link to Text Compute a cost-to-retail percentage under the following conditions. (Round ratios to 2 decimal places, e.g. 78.74%) Cost-to-retail percentage (1) Excluding both markups and markdowns. % (2) Excluding markups but including markdowns. % (3) Excluding markdowns but including markups. % (4)...

Presented below is information related to Pronghorn Company. Cost Retail Beginning inventory $ 61,600 $107,300 Purchases...

Presented below is information related to Pronghorn Company. Cost Retail Beginning inventory $ 61,600 $107,300 Purchases (net) 120,170 180,700 Net markups 10,325 Net markdowns 26,679 Sales revenue 187,090 a) Compute ending inventory at lower-of-cost-or-market. b) Compute cost of goods sold based on (a) c) Compute gross margin based on (a)

Presented below is information related to Martinez Company. Cost Retail Beginning inventory $ 53,760 $107,700 Purchases...

Presented below is information related to Martinez Company. Cost Retail Beginning inventory $ 53,760 $107,700 Purchases (net) 119,400 204,800 Net markups 9,605 Net markdowns 26,513 Sales revenue 175,600 Compute the ending inventory at retail. Ending inventory $ Compute a cost-to-retail percentage under the following conditions. (Round ratios to 2 decimal places, e.g. 78.74%) Cost-to-retail percentage (1) Excluding both markups and markdowns. % (2) Excluding markups but including markdowns. % (3) Excluding markdowns but including markups. % (4) Including both markdowns...

Presented below is information related to Skysong Company. Cost Retail Beginning inventory $ 56,640 $99,900 Purchases...

Presented below is information related to Skysong Company. Cost Retail Beginning inventory $ 56,640 $99,900 Purchases (net) 111,250 216,800 Net markups 10,119 Net markdowns 24,768 Sales revenue 173,490 Compute the ending inventory at retail. Ending inventory $ Compute a cost-to-retail percentage under the following conditions. (Round ratios to 2 decimal places, e.g. 78.74%) Cost-to-retail percentage (1) Excluding both markups and markdowns. % (2) Excluding markups but including markdowns. % (3) Excluding markdowns but including markups. % (4) Including both markdowns...

Presented below is information related to Pronghorn Company. Cost Retail Beginning inventory $ 54,510 $96,300 Purchases...

Presented below is information related to Pronghorn Company. Cost Retail Beginning inventory $ 54,510 $96,300 Purchases (net) 122,230 194,700 Net markups 9,740 Net markdowns 25,731 Sales revenue 203,890 Compute the ending inventory at retail. Ending inventory $ Compute a cost-to-retail percentage under the following conditions. (Round ratios to 2 decimal places, e.g. 78.74%) Cost-to-retail percentage (1) Excluding both markups and markdowns. % (2) Excluding markups but including markdowns. % (3) Excluding markdowns but including markups. % (4) Including both markdowns...

Presented below is information related to Culver Company. Cost Retail Beginning inventory $ 63,190 $103,900 Purchases...

Presented below is information related to Culver Company. Cost Retail Beginning inventory $ 63,190 $103,900 Purchases (net) 117,310 182,500 Net markups 11,288 Net markdowns 26,066 Sales revenue 170,960 Compute the ending inventory at retail. Ending inventory $ Compute a cost-to-retail percentage under the following conditions. (Round ratios to 2 decimal places, e.g. 78.74%) Cost-to-retail percentage (1) Excluding both markups and markdowns. % (2) Excluding markups but including markdowns. % (3) Excluding markdowns but including markups. % (4) Including both markdowns...

Presented below is information related to Marin, Inc. Cost Retail Beginning inventory $331,500 $585,000 Purchases 1,482,000...

Presented below is information related to Marin, Inc. Cost Retail Beginning inventory $331,500 $585,000 Purchases 1,482,000 2,613,000 Freight on purchases 63,180 Markups 136,500 Markup cancellations 109,200 Abnormal shortage 11,700 20,280 Markdowns 68,640 Markdown cancellations 9,360 Employee discounts 4,056 Sales revenue 2,788,500 Sales returns 78,000 Normal shortage 13,650 Purchase returns 17,160 31,980 Compute ending inventory by the conventional retail inventory method. (Round percentages for computational purposes to 1 decimal place, e.g. 0.4158 to 41.6% and final answer to 0 decimal places,...

Presented below is information related to Martinez Company. Cost Retail Beginning inventory $362,797 $286,000 Purchases 1,370,000...

Presented below is information related to Martinez Company. Cost Retail Beginning inventory $362,797 $286,000 Purchases 1,370,000 2,145,000 Markups 95,100 Markup cancellations 14,800 Markdowns 32,900 Markdown cancellations 5,100 Sales revenue 2,193,000 Compute the inventory by the conventional retail inventory method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.)

Subjects