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 $ 57,000 $ 76,000 Net purchases 109,160 126,000 $ 115,150 $ 132,400 Freight-in 3,800 4,300 Net markups 19,000 11,600 Net markdowns 3,800 4,000 Net sales to customers 124,460 120,440 Sales to employees (net of 10% discount) 4,500 5,850 Price Index: January 1, 2021 1.00 December 31, 2021 1.07 December 31, 2022 1.12
Dollar value LIFO method
For 2021
Cost | Retail | |
Beginning inventory (cost to retail percentage 0.75) | 57,000 | 76,000 |
Net purchases | 109,160 | 126,000 |
Freight-in | 3,800 | |
Net markups | 19,000 | |
(-) net mark downs | (3,800) | |
Goods available for sale (excluding beginning inventory) {Cost to retail percentage ( 112,960÷141,200)= 0.80} |
112,960 | 141,200 |
Goods available for sale | 169,960 | 217,200 |
(-) Net sales ( 124,460+5000) including sales to employees discount | (129,460) | |
Ending inventory at retail | 87,740 | |
Ending inventory at cost | (62,136) | |
Estimated cost of goods sold | 107,824 |
Employee discount 4,500
5000-4,500= 500 discount .90
Calculation of ending inventory at cost
Ending inventory at year end retail prices |
Step-1 ending inventory at base price | step-2 inventory layers at base year price |
step -3 Inventory layers converted to cost |
87,740 | 80,000(87,740÷1.07) | 76000 | 57000(76,000×.75) |
6000 | 5,136(6,000×1.07×.8) | ||
62,136 |
For 2022
Cost | Retail | |
Beginning inventory (cost to retail percentage=.70) | 62,136 | 87,740 |
Net purchases | 115,150 | 132,400 |
Freight-in | 4,300 | |
Net markups | 11,600 | |
(-) net markdowns | (4,000) | |
Goods available for sale (excluding beginning inventory) {Cost retail percentage (119,450÷140,000)= .85} |
119,450 | 140,000 |
Goods available for sale( including beginning inventory) | 181,586 | 227,740 |
(-) Net sales(120,440+6,500) including sales to employees discount | (126,940) | |
Ending inventory at retail | 100,800 | |
Ending inventory at cost | (63,442) | |
Estimated cost of goods sold | 118,144 |
Employee discount (10%) 5,850
6,500-650=5,850 employee discount .90
Calculation of ending inventory at cost
Ending inventory at retail price | step -1 ending inventory at base price | step -2 Inventory layers at base year price | step -3 Inventory layers converted to cost |
100,800 | 90,000(100,800÷1.12) | 87,740 | 61,418(87,740×.70) |
2,260 | 2024(2,260×1.12×.85) | ||
63,442 |
____×____
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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 $ 57,000 $ 76,000 Net purchases 109,160 126,000 $ 115,150 $ 132,400 Freight-in 3,800 4,300 Net markups 19,000 11,600 Net markdowns 3,800 4,000 Net sales to customers 124,460 120,440 Sales to employees (net of 10% discount) 4,500 5,850 Price Index: January...
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: Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 20% discount) Price Index: January 1, 2021 December 31, 2021 December 31, 2022 2021 2022 Cost Retail Cost Retail $ 48,000 $ 64,000 103,040 120,000 $115,150 $133,000 3,200 3,700 16,000 10,400...
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: Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 20% discount) Price Index: January 1, 2021 December 31, 2021 December 31, 2022 2021 2022 Cost Retail Cost Retail $46,200 $ 66,000 97,350 121,000 $111,998 $137,900 3,300 3,800 16,500 10,600 3,300...
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 $ 39,200 $ 56,000 Net purchases 92,600 116,000 $ 104,166 $ 128,400 Freight-in 2,800 3,300 Net markups 14,000 9,600 Net markdowns 2,800 3,000 Net sales to customers 113,355 117,120 Sales to employees (net of 20% discount) 3,300 5,280 Price Index: January...
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 $ 37,700 $ 58,000 Net purchases 87,120 117,000 $ 93,886 $ 123,300 Freight-in 2,900 3,400 Net markups 14,500 9,800 Net markdowns 2,900 3,100 Net sales to customers 115,790 112,000 Sales to employees (net of 20% discount) 3,400 5,440 Price Index: January...
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: Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 20% discount) Price Index: January 1, 2021 December 31, 2021 December 31, 2022 2021 2022 Cost Retail Cost Retail $28,000 $ 40,000 85,000 108,000 $90,000 $114,000 2,000 2,500 10,000 8,000 2,000...
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: Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 20% discount) Price Index: January 1, 2021 December 31, 2021 December 31, 2022 2021 2022 Cost Retail Cost Retail $ 58,500 $ 78,000 110,180 127,000 $115,808 $133,100 3,900 4,400 19,500 11,800...
Check my work 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: Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 20% discount) Price Index: January 1, 2021 December 31, 2021 December 31, 2022 2021 2022 Cost Retail Cost Retail $34,500 $ 46,000 93,860 111,000 $106,834 $123,900 2,300 2,800...
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 Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 20% discount) Price Index: $28,000 40,000 108,000 $ 90,000 $ 114,000 85,000 2,000 2,500 10,000 2,000 100,000 2,400 8,000 2,200 104,000 4,000 January 1, 2016 December...
PLEASE SHOW ALL WORK 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 Net purchases Freight-in Net markups Net markdown:s Net sales to customers sales to employees (net of 20% discount) Price Index: 串56,000 80,000 104,000 128,000 $109,695 $134,200 4,000 4,500 20,000 4,000 129,465 2,700 12,000 4,200 121,260 4,400 January...