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ar Cost $57,200 231,840 Retail $ 88,000 370,000 8,000 10,000 347,000 1.04 e dollar-value LIFO retail method. (Round ratio $ Cost 57,200 $ Retail 8

ar Cost $57,200 231,840 Retail $ 88,000 370,000 8,000 10,000 347,000 1.04 e dollar-value LIFO retail method. (Round ratio $ Cost 57,200 $ Retail 8

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2021, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information: Beginning inventory Net purchases Net markups Net markdowns Net sales Retail price index, end of year Cost $57,200 231, 840 Estimate ending inventory using the dollar-value LIFO retail method. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.)) Beginning inventory Plus: Net purchases Net markups Less: Net markdowns Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) Base layer cost-to-retail percentage 2021 layer cost-to-retail percentage Retail $ 88,000 370,000 8,000 10,000 347,000 1.04 Less: Net sales Estimated ending inventory at current year retail prices Estimated ending inventory at cost Estimated cost of goods sold $ Cost 57,200 $ 231,840 231,840 289,040 $ Retail 88,000 370,000 8,000 (10,000) 368,000 456,000 (347,000) 109,000 Cost-to-retail Ratio
Transcribed Image Text:On January 1, 2021, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information: Beginning inventory Net purchases Net markups Net markdowns Net sales Retail price index, end of year Cost $57,200 231, 840 Estimate ending inventory using the dollar-value LIFO retail method. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.)) Beginning inventory Plus: Net purchases Net markups Less: Net markdowns Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) Base layer cost-to-retail percentage 2021 layer cost-to-retail percentage Retail $ 88,000 370,000 8,000 10,000 347,000 1.04 Less: Net sales Estimated ending inventory at current year retail prices Estimated ending inventory at cost Estimated cost of goods sold $ Cost 57,200 $ 231,840 231,840 289,040 $ Retail 88,000 370,000 8,000 (10,000) 368,000 456,000 (347,000) 109,000 Cost-to-retail Ratio
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