Requirement 1 | |||
Employees discount must be deducted in retail column. | |||
2018 | |||
=22500/0.75 = 30000-22500=7500 = Employee Discounts | |||
Cost | Retail | ||
Beginning Inventory | 1,62,500.00 | 2,50,000.00 | |
Plus: Purchases | 8,00,000.00 | 10,84,000.00 | |
Freight in | 12,500.00 | ||
Less: Purchases Returns | -7,000.00 | -12,150.00 | |
Plus : Net Markups | 6,900.00 | ||
Less: Net Markdowns | -4,750.00 | ||
Goods available for sale (excluding beginning Inventory) | 8,05,500.00 | 10,74,000.00 | |
Goods available for sale (including beginning Inventory) | 9,68,000.00 | 13,24,000.00 | |
Base layer cost to retail percentage : | =162500/250000 = 65% | ||
2018 Layer cost to retail percentage | =805500/1074000 = 75% | ||
Less: | |||
Normal spoilage | -4,200.00 | ||
Net sales (950000+22500) | -9,72,500.00 | ||
Employee Discounts | -7,500.00 | ||
Estimated Ending inventory at retail | 3,39,800.00 | ||
Estimated ending inventory at cost | 1,82,975.00 | ||
Estimated cost of goods sold | 7,85,025.00 | ||
Estimated Ending inventory at cost | |||
Ending inventory at year end retail prices | Ending inventory at base year prices | Inventory layers at base year retail prices | Inventory layers converted to cost |
3,39,800.00 | =339800/1.25 = $271840 | 2,50,000.00 | 250000
x 1.00 x 65% $162500 |
21,840.00 | 21840 x
1.25 x 75% =20475 |
||
Total Ending Inventory at dollar value LIFO retail cost | 1,82,975.00 |
Employees discount must be deducted in retail column. | |||
2019 | |||
=22500/0.75 = 30000-22500=7500 = Employee Discounts | |||
Cost | Retail | ||
Beginning Inventory | 1,82,975.00 | 3,39,800.00 | |
Plus: Purchases | 6,80,000.00 | 10,63,000.00 | |
Freight in | 2,000.00 | ||
Less: Purchases Returns | -2,000.00 | -4,300.00 | |
Plus : Net Markups | 11,800.00 | ||
Less: Net Markdowns | -8,000.00 | ||
Goods available for sale (excluding beginning Inventory) | 6,80,000.00 | 10,62,500.00 | |
Goods available for sale (including beginning Inventory) | 8,62,975.00 | 14,02,300.00 | |
Base layer cost to retail percentage : | =182975/339800 = 53.85% | ||
2018 Layer cost to retail percentage | =680000/1062500 = 64% | ||
Less: | |||
Normal spoilage | 6,900.00 | ||
Net sales (722000+22500) | -7,55,400.00 | ||
Employee Discounts | -7,500.00 | ||
Estimated Ending inventory at retail | 6,46,300.00 | ||
Estimated ending inventory at cost | 324767 | ||
Estimated cost of goods sold | 538208 | ||
Estimated Ending inventory at cost | |||
Ending inventory at year end retail prices | Ending inventory at base year prices | Inventory layers at base year retail prices | Inventory layers converted to cost |
6,46,300.00 |
=646300/1.25 = 517040 |
3,39,800.00 | 339800
x 1.00 x 53.85% $182975 |
1,77,240.00 | 177240
x 1.25 x 64% $141792 |
||
Total Ending Inventory at dollar value LIFO retail cost | 3,24,767.00 |
Requirement 2 | |||
Employees discount must be deducted in retail column. | |||
2,018 | |||
=22500/0.75 = 30000-22500=7500 = Employee Discounts | |||
Cost | Retail | ||
Beginning Inventory | 1,82,975.00 | 3,39,800.00 | |
Plus: Purchases | 8,00,000.00 | 10,84,000.00 | |
Freight in | 12,500.00 | ||
Less: Purchases Returns | -7,000.00 | -12,150.00 | |
Plus : Net Markups | 6,900.00 | ||
Less: Net Markdowns | -4,750.00 | ||
Goods available for sale (including beginning Inventory) | 9,88,475.00 | 14,13,800.00 | |
Cost to retail percentage |
=988475/1413800 = 69.92% |
||
Less: | |||
Normal spoilage | -4,200.00 | ||
Net sales (950000+22500) | -9,72,500.00 | ||
Employee Discounts | -7,500.00 | ||
Estimated Ending inventory at retail | 4,29,600.00 | ||
Estimated ending inventory at cost(429600*69.92%) | 3,00,359.92 | ||
Estimated cost of goods sold | 6,88,115.08 |
Requirement 3 | |||
Employees discount must be deducted in retail column. | |||
2018 | |||
=22500/0.75 = 30000-22500=7500 = Employee Discounts | |||
Cost | Retail | ||
Beginning Inventory | 1,82,975.00 | 3,39,800.00 | |
Plus: Purchases | 8,00,000.00 | 10,84,000.00 | |
Freight in | 12,500.00 | ||
Less: Purchases Returns | -7,000.00 | -12,150.00 | |
Plus : Net Markups | 6,900.00 | ||
9,88,475.00 | 14,18,550.00 | ||
Cost to retail percentage |
=988475/1418550 = 69.68% |
||
Less: Markdowns | -4,750.00 | ||
Goods available for sale (including beginning Inventory) | 14,13,800.00 | ||
Less: | |||
Normal spoilage | -4,200.00 | ||
Net sales (950000+22500) | -9,72,500.00 | ||
Employee Discounts | -7,500.00 | ||
Estimated Ending inventory at retail | 4,29,600.00 | ||
Estimated ending inventory at cost(429600*69.68%) | 2,99,354.17 | ||
Estimated cost of goods sold | 6,89,120.83 |
On January 1, 2018, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2018 and 2019 are as follows: 2018 2019 Retail Reta...
On January 1, 2018, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail and cost indexes for 2018 and 2019 are as follows: 2018 2019 Cost Retail Beginning inventory Purchases Purchase returns Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 25% discount) Normal spoilage Price Index: January 1, 2018 December 31, 2018 December 31, 2019 Cost Retail $152,750 $235,000 537,000 770,000 5,000 3, 150 6,300 6,750 4,600 600,000...
On January 1, 2018, Pet Friendly Stores adopted the 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 $ 172,500 $ 230,000 Purchases 460,000 580,000 $ 670,000 $ 937,000 Purchase returns 3,600 3,150 3,800 5,400 Freight-in 6,000 7,000 Net markups 5,750 11,000 Net markdowns 4,600 7,600 Net sales to customers 450,000 682,000 Sales to employees (net of 20% discount) 24,000 24,000...
I only need help with the last two in 2019 On January 1, 2018, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2018 and 2019 are as follows: 2018 Cost Retail $152,750 $235, 000 537,000 5,000 6, 300 2019 Retail Cost Beginning inventory Purchases Purchase returns Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 25% discount) Normal spoilage Price Index: 770,000 3,150 $700,...
On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2021 and 2022 are as follows: 2022 2021 Retail Retail Cost Cost $ 90,000 $150,000 478,000 2,500 6,960 Beginning inventory Purchases $511,000 $760,000 2,200 ৪, ০০০ 730,000 3,500 4,000 Purchase returns Freight-in Net markups Net markdowns 10,000 6,000 8,500 4,000 650,000 14,000 5,000 680,000 Net sales to customers 17,500 6,600 Sales to employees (net of 30% di...
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...
Alquist Company uses the retail method to estimate its ending inventory. Selected information about its year 2018 operations is as follows: January 1, 2018, beginning inventory had a cost of $130,000 and a retail value of $180,000. Purchases during 2018 cost $2,027,000 with an original retail value of $3,080,000. Freight costs were $13,000 for incoming merchandise. Net additional markups were $240,000 and net markdowns were $320,000. Based on prior experience, shrinkage due to shoplifting was estimated to be $18,000 of...
Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2018 are as follows: Cost Retail COST RETAIL Beginning inventory $ 89,000 $ 179,000 Purchases 352,000 579,000 Freight-in 8,900 Purchase returns 6,900 10,900 Net markups 15,900 Net markdowns 11,900 Normal spoilage 2,900 Abnormal spoilage 4,512 7,900 Sales 539,000 Sales returns 9,900 The company records sales net of employee discounts. Discounts for 2018 totaled $3,900. Required: 1. Estimate Sparrow’s ending inventory and cost...
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: 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 $ 48,000 $ 64,000 103,040 120,000 $115,150 $133,000 3,200 3,700 16,000 10,400...