On January 1, 2024, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both...
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On January 1, 2024, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2024 and 2025 are as follows: Beginning inventory Purchases Purchase returns Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 30% discount) Normal spoilage Price Index: January 1, 2024 December 31, 2024 December 31, 2025 2024 2025 Cost Retail Cost Retail $ 168,750 503,000 4,000 $ 225,000 633,000 3,650 5,800 $ 665,000 3,700 5,000 $ 1,113,000 5,800 6,100 4,450 453,000 10,800 7,500 712,000 20,300 6,000 20,300 6,400 1.00 1.25 1.25 Required: 1. Estimate the 2024 and 2025 ending inventory and cost of goods sold using the dollar-value LIFO retail method. Note: Round your cost-to-retail percentage calculation to 2 decimal places (i.e., 0.1234 should be 12.34%) and final answers to the nearest whole dollar. 2024 2025 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold On January 1, 2024, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2024 and 2025 are as follows: Beginning inventory Purchases Purchase returns Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 30% discount) Normal spoilage Price Index: January 1, 2024 December 31, 2024 December 31, 2025 2024 2025 Cost Retail Cost Retail $ 168,750 503,000 4,000 $ 225,000 633,000 3,650 5,800 $ 665,000 3,700 5,000 $ 1,113,000 5,800 6,100 4,450 453,000 10,800 7,500 712,000 20,300 6,000 20,300 6,400 1.00 1.25 1.25 Required: 1. Estimate the 2024 and 2025 ending inventory and cost of goods sold using the dollar-value LIFO retail method. Note: Round your cost-to-retail percentage calculation to 2 decimal places (i.e., 0.1234 should be 12.34%) and final answers to the nearest whole dollar. 2024 2025 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold
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To estimate the 2024 and 2025 ending inventory and cost of goods sold using the dollarvalue LIFO retail method we need to follow these steps 1 Calcula... View the full answer
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