Question

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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 1, 2018 December 31, 2018 December 31, 2019 1.00 1.06 1.12 Required Estimate the 2018 and 2019 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method. (Do not round other intermediate calculations. Round y。ur cost-to-retail percentage calculations to 2 decimal places and final answers to the nearest whole dollar.) 2018 2019 91,160 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold

Answer 1

	2018
	Cost	Retail
Beginning Inventory	$56,000	$88,000
Cost to retail %	56000/88000
	64%
Net Purchases	$104,000	$128,000
Freight In	$4,000
Net Markups		$20,000
Net Markdowns		($4,000)
Total	$108,000	$144,000
Ending Inventory %	$108000/$144000
	75%
	Cost	Retail
Beginning Inventory	$56,000	$88,000
Purchases	$108,000	$144,000
Total Inventory	$164,000	$232,000
Net Sales to Customer		129465
Sales to employee		3375	2700/.80
Total Sales		132840
Ending Inventory at retail price		$99,160
/price index		1.06
Ending Inventory Value		$93,547
Yr	Retail Price	Index	Cost to retail %	Ending Inventory Cost
2018	88000	1	64%	56320
2019	5547	1.08	75%	4493
	93547			60813
Cost of Goods Sold -2018	Total Inventory available -Ending Inventory Cost
	$164000-$60813
	$103,187
Next Yr
	2019
	Cost	Retail
Beginning Inventory	$60,813	$93,547
Net Purchase	$109,695	$134,200
Freight In	$4,500
Net Markeups		$12,000
Net Markdowns		($4,200)
Total	$175,008	$235,547
Ending Inventory%	175008/235547
	74%
	Cost	Retail
Beginning Inventory	$60,813	$93,547
Purchases	175008	235547
Total Inventory	$235,821	$329,094
Net Sales to Customer		$121,260
Sales to employee		$5,500	4400/.8
Total Sales		126760
Ending Inventory at retail price		$202,334
/ Price Index		1.12
Ending Inventory Value		$180,655
Yr	Retail Price	Index	Cost to retail %	Ending Inventory Cost
2017	88000	1	64%	56320
2018	5547	1.08	75%	4493
2019	87108	1.12	74%	72195
	180655			133008
Cost of Goods Sold 2019	Total Inventory available-Ending Inventory Cost
	$235821-$133008
	$102,813
Solution	2018	2019
Estimated ending inventory at retail	$99,160	$180,655
Estimated ending inventory at cost	$60,813	$133,008
Estimated cost of goods sold	$103,187	$102,813