On January 1, 2016, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory...
60.1K
Verified Solution
Link Copied!
Question
Accounting
On January 1, 2016, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2016 and 2017 are as follows:
2016
2017
Cost
Retail
Cost
Retail
Beginning inventory
$
49,000
$
70,000
Net purchases
99,250
123,000
$
105,764
$
129,700
Freight-in
3,500
4,000
Net markups
17,500
11,000
Net markdowns
3,500
3,700
Net sales to customers
124,460
116,240
Sales to employees (net of 20% discount)
2,800
6,400
Price Index:
January 1, 2016
1.00
December 31, 2016
1.04
December 31, 2017
1.08
Required:
Estimate the 2016 and 2017 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method. (Round your cost-to-retail percentage calculations to 2 decimal places.)
2016
2017
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
