Question
On January 1, 2024, 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, 2024, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2024 and 2025 are as follows:
| 2024 | 2025 | |||
|---|---|---|---|---|
| Cost | Retail | Cost | Retail | |
| Beginning inventory | $ 28,000 | $ 40,000 | ||
| Net purchases | 85,000 | 108,000 | $ 90,000 | $ 114,000 |
| Freight-in | 2,000 | 2,500 | ||
| Net markups | 10,000 | 8,000 | ||
| Net markdowns | 2,000 | 2,200 | ||
| Net sales to customers | 100,000 | 104,000 | ||
| Sales to employees (net of 20% discount) | 2,400 | 4,000 | ||
| Price Index: | ||||
| January 1, 2024 | 1.00 | |||
| December 31, 2024 | 1.06 | |||
| December 31, 2025 | 1.10 | |||
Required:
Estimate the 2024 and 2025 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method.
Note: Do not round other intermediate calculations. Round your cost-to-retail percentage calculation to 2 decimal places and final answers to the nearest whole dollar.
|
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Residential Energy Audit Manual
Authors: Fairmont
1st Edition
0915586541, 978-0915586547
