Question

Green Acres Co. has elected to use the dollar-value LIFO retail method to value its inventory. The following data has been accumulated from the accounting records: Pertinent retail price indexes: Cost $243,580 513,150 Merchandise inventory, January 1, 2021 Net purchases Net markups Net markdowns Net sales Retail $380,000 770,000 10,600 3,100 578,900 January 1, 2021 December 31, 2021 1.00 1.10 Required: Estimate the cost of ending inventory for December 31, 2021. (Round "Cost-to- retail percentage" to 2 decimal places.) Estimated ending inventory

Answer 1

$349,576
	COST	RETAIL
Inventory Jan. 1	$243,580	$380,000
Net purchases	$513,150	$770,000
Net markups		$10,600
Net markdowns		-$3,100
Subtotal		$777,500
Cost-to-retail: ($513,150/$777,500 = 66.00%)
Goods available for sale	$756,730	$1,157,500
Net sales		-$578,900
Ending inventory at current year retail		$578,600
Ending inventory at Base year Retail Prices	$526,000
($578,600/1.10)
$380,000 x 1.00 x 0.641	$243,580
$146,000 x 1.10 x 0.66	$105,996
Total ending inventory at dollar-value LIFO retail cost	$349,576