Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 Retail Cost 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: $162,500 250,000 800,000 1,084,000 $680,000 $1,063,000 4,300 7,000 12,500 2,000 2,000 12,150 6,900 4,750 950,000 22,500 4,200 11,800 8,000 722,000 22,500 6,900 1.00 1.25 1.25 January 1, 2018 December 31, 2018 December 31, 2019 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 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 Retail Cost 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: $162,500 250,000 800,000 1,084,000 $680,000 $1,063,000 4,300 7,000 12,500 2,000 2,000 12,150 6,900 4,750 950,000 22,500 4,200 11,800 8,000 722,000 22,500 6,900 1.00 1.25 1.25 January 1, 2018 December 31, 2018 December 31, 2019 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started