Question

Saved Check my work maintains Inventory records at selling prices as well as at cost. For 2021, the records indicate the following data ($ in 000) Cost Retail $ 77 $ 140 682 1.026 bed Beginning inventory Purchases Freight-in on purchases Purchase returns Net markups Net markdowns Net Sales Required: Assuming the price level increased from 100 at January 1 to 125 at December 31, 2021. use the dollar value UFO retail method to approximate cost of ending inventory and cost of goods sold. (Do not round Intermediate calculations. Round final answers to the nearest whole dollar. Enter your answers in thousands.) (5 in 0005) Estimated ending inventory retail Estimated ending inventory at cost Estimated cost of goods sold

Answer 1

Estimated ending inventory at current year retail prices	$241
Estimated ending inventory at cost	$123
Estimated cost of goods sold	$668
	COST	RETAIL
Beginning inventory	$77	$140
Purchases	$682	$1,026
Freight-in	$33
Purchase returns	-$1	-$2
Net markups		$4
Net markdowns		-$8
Goods available for sale (excluding beginning inventory)	$714	$1,020
Goods available for sale (including beginning inventory)	$791	$1,160
Cost-to-retail: ($714/$1,020 = 70%)
cost-to-retail percent ($77/$140 = 0.55%)
Net sales		-$919
Ending inventory at current year retail		$241
Ending Inventory at Base Year Retail Prices	$193
($241/1.25)
$140 x 1.00 x 0.55	$77
$53 x 1.25 x 0.70	$46
Total ending inventory at dollar-value LIFO retail cost	$123