Question
*************PLEASE SHOW ALL WORK THANK YOU*************** Firm C uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of
*************PLEASE SHOW ALL WORK THANK YOU***************
- Firm C uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. Assume a retail price index of 1.1 for 2021. The following data are available for calendar year end 2021:
| Cost | Retail | |
| Beginning inventory | 35,750 | 65,000 |
| Net purchases | 25,850 | 47,000 |
| Net markups | 8,000 | |
| Net markdowns | 6,000 | |
| Net sales | 25,000 |
a. Complete the table below for December 2021 assuming the following methods:
|
| Average Cost | Average Cost - Conventional | LIFO | LIFO - Dollar-Value |
| Estimated COGS |
|
|
|
|
| Estimated Ending Inventory |
|
|
|
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b. Assume ending inventory (retail) equals $100,000 in December 2022 with a retail price index of 1.16 and a cost-to-retail percentage of 53% for inventory purchased in 2022. Complete the table below for December 2022 assuming the following methods:
|
| LIFO | LIFO - Dollar-Value |
| 2022 Estimated Ending Inventory |
|
|
c. Assume ending inventory (retail) equals $76,000 in December 2022 with a retail price index of 1.16 and a cost-to-retail percentage of 53% for inventory purchased in 2022. Complete the table below for December 2022 assuming the following methods:
|
| LIFO | LIFO - Dollar-Value |
| 2022 Estimated Ending Inventory |
|
|
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
