Question

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, 000 $879, 000 3,900 7,000 3, 625 6,750 4,600 600,000 22, 500 4,000 11,200 7,700 716,000 22,500 6, 600 January 1, 2018 December 31, 2018 December 31, 2019 1.00 1.25 1.25 Required: 1. Estimate the 2018 and 2019 ending inventory and cost of goods sold using the dollar-value LIFO retail method. 2. Estimate the 2018 ending inventory and cost of goods sold using the average cost retail method. 3. Estimate the 2018 ending inventory and cost of goods sold using the conventional retail method. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Estimate the 2018 and 2019 ending inventory and cost of goods sold using the dollar-value LIFO retail method. (Round final answers to the nearest whole dollar.)

Answer 1

1.

Amount of ending inventory at retail is already given.

Compute the amount of ending inventory at cost for 2019 as follows:

Thus, the amount of ending inventory at cost for 2019 is $ 307,145.

Working note:

a.

Compute the amount of ending inventory at base year retail prices as follows:

b.

Calculate the amount of inventory layers at current year retail prices 2018 as follows:

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c.

Calculate the amount of inventory layers at current year retail prices 2019 as follows:

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d.

Calculate the amount of inventory layers converted to cost (base) as follows:

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e.

Calculate the amount of inventory layers converted to cost (2018) as follows:

f.

Calculate the amount of inventory layers converted to cost (2018) as follows:

$NmJiIU9NM7wAAAAASUVORK5CYII=$

Compute the amount of estimated cost of goods sold for 2019 as follows:

Thus, the amount of estimated cost of goods sold for 2019 is $ 382,905.