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On January 1, 2016, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for
On January 1, 2016, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2016 and 2017 are as follows: |
2016 | 2017 | |||||||||||
Cost | Retail | Cost | Retail | |||||||||
Beginning inventory | $ | 37,700 | $ | 58,000 | ||||||||
Net purchases | 87,120 | 117,000 | $ | 93,886 | $ | 123,300 | ||||||
Freight-in | 2,900 | 3,400 | ||||||||||
Net markups | 14,500 | 9,800 | ||||||||||
Net markdowns | 2,900 | 3,100 | ||||||||||
Net sales to customers | 115,790 | 112,000 | ||||||||||
Sales to employees (net of 20% discount) | 3,400 | 5,440 | ||||||||||
Price Index: | ||||||||||||
January 1, 2016 | 1.00 | |||||||||||
December 31, 2016 | 1.04 | |||||||||||
December 31, 2017 | 1.08 | |||||||||||
Required: |
Estimate the 2016 and 2017 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method. (Round your cost-to-retail percentage calculations to 2 decimal places.) |
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