Question

Crosby company owns

Crosby Company owns a chain of hardware stores throughout the state. The company uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the three months ending March 31, 2021 Cost $160,000 607,760 Beginning inventory Net purchases Net markups Net markdowns Net sales Retail $280,000 840,000 20.000 4,000 300,000 Required: Complete the table below to estimate the LIFO cost of ending inventory and cost of goods sold for the three months ending March 31, 2021, using the information provided. Assume stable retail prices during the period

Answer 1

As per policy, we can answer only one question at a time, so answering question first here :

Q1) estimate the LIFO cost of ending inventory and cost of goods sold:
	Cost	retail		cost to retail ratio
Beginning inventory	160000	280000		0.571428571
Purchases	607760	840000	840000
Available for sale		1120000
Add: Net markups		20000	20000
Less: Net markdowns		4000	4000
Purchases at cost	767760	1136000	856000	607760/856000=0.71
Less: Net Sales		800000
Ending inventory at retail		336000
End inventory at LIFO cost:
	Retail	Ratio cost to retail	At cost
opening	280000	0.571429	160000
during year	56000	0.71	39760
Total	336000		199760
Cost of goods sold:
Total inventory available for sale	767760
Less: ending inventory at cost	199760
Cost of goods sold:	568000