Question

A Chaster BHw i rewUonmect.mheducslion.comilkowicorneat.hml Chaater S HVw Sr.wd Help Save & Exit Submit On January1 2016, the Brunswick He: Comparv adopted the doller-velue LIFO reteil method, The following data are eveileble for 6 2016 Внtв Butsi. ant. E B,640 8144,000 Hegineing inventory Ниt. аehинни 13:,s00 267.DDD Not narkup0 8.000 15 Инt. паганипи 12, DDD 227,000 punta Het salce Rutsi. pien incex, 12/31/1 1.1: Required: Calculate the cstimated ending inventory and cost of paods sold for 2019. 5 180,000 Ending invencery at rotail Pri Ending invertery at cost Coet of goods sad Balaтна 6 of 10 E < Prev Naxt > Н

On January 1, 2018, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The following data are available for 2018:

	Cost		Retail
Beginning inventory	$	80,640	$	144,000
Net purchases		131,500		267,000
Net markups				8,000
Net markdowns				12,000
Net sales				227,000
Retail price index, 12/31/18				1.20

Required:
Calculate the estimated ending inventory and cost of goods sold for 2018.

Ending inventory at retail :$180,000

Ending inventory at cost:?

Cost of goods sold:?

Answer 1

	Cost	Retail
	$	$
Beginning inventory	80,640	1,44,000
Add: Net purchases	1,31,500	2,67,000
Net Markup		8,000
Less: Mark down		-12,000
Goods available for sale (excluding beginning inventory)	1,31,500	2,63,000
Goods available for sale (including beginning inventory)	2,12,140	4,07,000
Base year cost to retail (80640/144000)	56%
2018 cost to retail (131500/263000)	50%
Less: Net sales		227000
Estimated ending inventory at current year retail prices		1,80,000
	Estimated Ending inventory at year end retail price	Estimated Ending inventory at base year retail price
	$	$
	1,80,000	150000
		(180000/1.20)
Less: Beginning inventory		1,44,000
Balance		6,000
$ 6000 * 1.20 * 50% (2018 ratio)		3600
Add: Cost of beginning inventory		80,640
Total cost of ending inventory (LIFO)		84240
Cost of goods sold
Cost of total inventory		2,12,140
Less: Cost of ending inventory (LIFO)		84240
Cost of goods sold		1,27,900