On January 1, 2024, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory...
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Accounting
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
$ 39,200
$ 56,000
Net purchases
92,600
116,000
$ 104,166
$ 128,400
Freight-in
2,800
3,300
Net markups
14,000
9,600
Net markdowns
2,800
3,000
Net sales to customers
113,355
117,120
Sales to employees (net of 20% discount)
3,300
5,280
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.
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