Question
Problem 9-11 (Algo) Dollar-value LIFO retail [LO9-5] On January 1, 2024, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both
Problem 9-11 (Algo) Dollar-value LIFO retail [LO9-5]
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 | $ 35,000 | $ 50,000 | ||
| Net purchases | 89,750 | 113,000 | $ 96,525 | $ 118,700 |
| Freight-in | 2,500 | 3,000 | ||
| Net markups | 12,500 | 9,000 | ||
| Net markdowns | 2,500 | 2,700 | ||
| Net sales to customers | 109,890 | 104,260 | ||
| Sales to employees (net of 20% discount) | 3,000 | 4,800 | ||
| Price Index: | ||||
| January 1, 2024 | 1.00 | |||
| December 31, 2024 | 1.06 | |||
| December 31, 2025 | 1.14 |
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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Iso 9000 Quality Systems Auditing
Authors: G. D. Green, Dennis Green
1st Edition
0566079003, 978-0566079009
