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On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2021 and
On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2021 and 2022 are as follows: 2021. 2022 Cost. Retail. Cost. Retail beginning inventory: 108500 175000. Purchases: 520000 805000. 635000 800000 Purchases return: 3200. 5000. 2700. 4425 Freight-in: 4500. 6000 Net markups: 6150. 8800 Net markdowns: 4150. 6500 Net sale to customers: 670000 692000 Sales employees(net 25%). 22500. 22500 Normal Spoilage. 2000. 5400 Price Index: January 1,2021. 1.00 December 31,2021. 1.10 December 31,2022. 1.23 1. Estimate the 2021 and 2022 ending inventory and cost of goods sold using the dollar-value LIFO retail method. 2021. 2022 Estimated ending inventory retail: Estimated endong inventory cost: Estimated cost of goods sold: 2. Estimate the 2021 endong inventory and cost if goods sold using the average cost retail method Average Cost Retail Method Est.ending inventory retail: Est.ending inventory cost: Est. cost of goods sold: 3. Estimate the 2021 ending inventory and cost of goods sold using the conventional retail method Conventional Retail Method Est.ending inventory retail: Est.ending inventory cost: Est. cost if goods sold:
2021. 2022
Cost. Retail. Cost. Retail
beginning inventory: 108500 175000.
Purchases: 520000 805000. 635000 800000
Purchases return: 3200. 5000. 2700. 4425
Freight-in: 4500. 6000
Net markups: 6150. 8800
Net markdowns: 4150. 6500
Net sale to customers: 670000 692000
Sales employees(net 25%). 22500. 22500
Normal Spoilage. 2000. 5400
Price Index:
January 1,2021. 1.00
December 31,2021. 1.10
December 31,2022. 1.23
1. Estimate the 2021 and 2022 ending inventory and cost of goods sold using the dollar-value LIFO retail method.
2021. 2022
Estimated ending inventory retail:
Estimated endong inventory cost:
Estimated cost of goods sold:
2. Estimate the 2021 endong inventory and cost if goods sold using the average cost retail method
Average Cost Retail Method
Est.ending inventory retail:
Est.ending inventory cost:
Est. cost of goods sold:
3. Estimate the 2021 ending inventory and cost of goods sold using the conventional retail method
Conventional Retail Method
Est.ending inventory retail:
Est.ending inventory cost:
Est. cost if goods sold:
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408076866
