requirements1. cost of inventory on hand2. endinginventory using LIFO retail method3. cost of ending inventory using dollar LIFO RETAIL method Bramble Department Store converted from the conventional retail method to the LIFO retail method on January 1, 2020, and is nowconsidering converting to the dollar-value LIFO inventory method. During your examination of the financial statements for the yearended December 31, 2021, management requested that you furnish a summary showing certain computations of inventory cost forthe past 3 years.Here is the available information.1.The inventory at January 1, 2019. had a retail value of $56,700 and cost of $30,000 based on the conventional retail method.2.Transactions during 2019 were as follows.CostRetailPurchases$295,468$546.900Purchase returns5,2009.B00Purchase discounts6.000Gross sales revenue (after employee discounts)561.000Sales returns9,100Employee discounts3,000Freight-in17400Net markups20,400Net markdowns11,800The retail value of the December 31,2020, inventory was $75,900, the cost ratio for 2020 under the LIFO retail methodwas 5 and the regional price lndex was 106% of the January 1,2020, price levelThe retail value of the December 31, 2021, inventory was $62.700, the cost ratio for 2021 under the LIFOretail methodwas S8X and the regional price Index was 108% of the January 1.2020, price level4.

Name: requirements1. cost of inventory on hand2. endinginventory using LIFO
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: requirements1. cost of inventory on hand2. endinginventory using LIFO retail method3. cost of ending inventory using dollar LIFO RETAIL method Bramble Department Store converted from the conventional retail method to the LIFO retail method on January

Cost of goods sold budget- The operating budget includes the cost of goods sold (COGS) budget. The…

Business

Accounting

Bramble Department Store converted from the conventional retail method to the LIFO retail method on January 1, 2020, and is now considering converting to the dollar-value LIFO inventory method. During your examination of the financial statements for the year ended December 31, 2021, management requested that you furnisha summary showing certain computations of inventory cost for the past 3 years Here is the available information

Bramble Department Store converted from the conventional retail method to the LIFO retail method on January 1, 2020, and is now considering converting to the dollar-value LIFO inventory method. During your examination of the financial statements for the year ended December 31, 2021, management requested that you furnisha summary showing certain computations of inventory cost for the past 3 years Here is the available information

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Assuming a perpetual inventory system and the last-in, first-out method, determine (a) the cost of…

A: Question is of Last -in, First - out method. So, when units are sold on September 5, there were…

Q: When using a perpetual inventory system, the journal entry to record the cost of goods sold is:…

A: Perpetual inventory system reports the inventory units on regular basis.

Q: Requirements 1. Determine the amounts that Woody's should report for cost of goods sold and ending…

A: INVENTORY VALUATION Inventory Valuation is a Method of Calculation of Value of Inventory at the End…

Q: More info Oct. 1 Beginning merchandise inventory Oct. 11 Purchase Oct. 23 Sale Oct. 26 Purchase Oct.…

A: Cost of goods sold is the amount of cost incurred on the making of the goods sold in the…

Q: How do you complete Inventory by three methods, cost of merchandise sold

A: Inventory valuation is a method of finding the actual cost of the goods left unsold at the end of a…

Q: The beginning inventory was 390 units at a cost of $10 per unit. Goods available for sale during the…

A: The first in fist out method is a inventory valuation model which sells the first purchases first.…

Q: [The following information applies to the questions displayed below.] The following are the…

A: a.LIFO (Periodic)UnitsCost per unitTotalBeginning inventory45$10$450Purchases July…

Q: Under perpetual inventory system, the journal entry to record cost of sales of merchandise items is:

A: In accounting there are two main inventory systems – perpetual inventory system and periodic…

Q: Your answer is correct. Calculate the cost of goods sold and ending inventory using FIFO. Cost of…

A: INVENTORY VALUATIONInventory Valuation is a method of calculation of value of inventory at the end…

Q: DATA Units Per Unit Description Inventory on hand Purchase Date Jan 1 1,000 2$ 4 Jan 3 3,000 2$ Jan…

A: Last in first out is also written as LIFO. It is the method used for valuation of material and…

Q: DETERMINING THE BEGINNING AND ENDING INVENTORY FROM A PARTI ALSPREADSHEET: PERIODIC INVENTORY SYSTEM…

A: The cost of goods sold is calculated as difference between cost of goods available for sale and…

Q: oods purchased and held for resale are commonly known as _____. perpetual inventoryperiodic…

A: Periodic Inventory System: The periodic inventory system records and updates the inventory at the…

Q: Flora's Gifts reported the following current-month data for its only product. The company uses a…

A: Solution A: Computation of COGS and ending inventory - Specific identification Particulars Cost…

Q: Compute the inventory by the conventional retail inventory method. Ending inventory using…

A: The retail inventory method is a method that is used for the estimation of the merchandise value.…

Q: The following accounts are included in the ledger of David Company: Advertising expense Freight-in…

A: Cost of goods sold = Beginning inventory + Net purchases + Direct expenses - Ending inventory

Q: When inventory is sold, the cost of the inventory is removed from the Inventory account and reported…

A: COST OF GOODS SOLDCost of Goods Sold States the Amount of Cost Included in the Total Number of Units…

Q: Using the following letters to represent items: P = purchases (net) C = cost of good sold B =…

A: We know, Ending inventory = Begining inventory + Purchases - Cost of good sold E = B + P - C

Q: Unit Cost or Date Description Quantity Selling Price Beginning inventory 39 $41 4 Purchase 139 46 10…

A: LIFO Ending inventory Beginning inventory + purchases - sales + sales return + purchase - purchase…

Q: Need to know how to get ending inventory for JAFFE on a corrected income statement for NPV

A: This question is related to the ending inventory before moving into the question first we know about…

Q: What amount should be reported for inventory on Sheridan Frame Camera Shop's balance sheet, assuming…

A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…

Q: The maintains a perpetual inventory systemDetermine the cost of goods sold for each sale and the…

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: Step 1:### IntroductionInventory valuation is a crucial accounting process that determines the value…

Q: 15 20 28 otals More info Aug. 1 Aug. 3 Aug. 12 Aug. 15 Beginning merchandise inventory, 10 books @…

A: Lets understand the basics. There are different inventory systems are followed by the entities which…

Q: Multiple Select Question Select all that apply Which of the costs below would be included in the…

A: Accounting standard says that inventory should be valued at cost or market which every is…

Q: der the method, ending inventory is based on the costs of the most recent purchases. A. FIFO B.…

A: The question is multiple choice question. Required Choose the Correct Option.

Q: 1a The inventory cost flow method that reports the earliest costs in ending inventory is a. LIFO b.…

A: When the earliest costs are represented in the ending inventory it means that the inventory with the…

Q: a.) determine the cost assigned to ending inventory and to the cost of goods sold using FIFO.

A: Solution :

Q: Cheyenne Ltd. reports the following inventory transactions in a periodic inventory system for the…

A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method. Under…

Q: Carlson Auto Dealers Inc. sells a handmade automobile as its only product. Each automobile is…

A: 2. Cost of goods sold = $60000+$60000+$63000+$63000+$63000+$64500+$66000+$69000+$70500 = $579000 3…

Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

Topic Video

Question

requirements

1. cost of inventory on hand

2. ending

inventory using LIFO retail method

3. cost of ending inventory using dollar LIFO RETAIL method

Bramble Department Store converted from the conventional retail method to the LIFO retail method on January 1, 2020, and is now
considering converting to the dollar-value LIFO inventory method. During your examination of the financial statements for the year
ended December 31, 2021, management requested that you furnish a summary showing certain computations of inventory cost for
the past 3 years.
Here is the available information.
1.
The inventory at January 1, 2019. had a retail value of $56,700 and cost of $30,000 based on the conventional retail method.
2.
Transactions during 2019 were as follows.
Cost
Retail
Purchases
$295,468
$546.900
Purchase returns
5,200
9.B00
Purchase discounts
6.000
Gross sales revenue (after employee discounts)
561.000
Sales returns
9,100
Employee discounts
3,000
Freight-in
17400
Net markups
20,400
Net markdowns
11,800
The retail value of the December 31,2020, inventory was $75,900, the cost ratio for 2020 under the LIFO retail method
was 5 and the regional price lndex was 106% of the January 1,2020, price level
The retail value of the December 31, 2021, inventory was $62.700, the cost ratio for 2021 under the LIFOretail method
was S8X and the regional price Index was 108% of the January 1.2020, price level
4.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Compute cost of goods sold using the following information. Merchandise inventory, beginning Cost of merchandise purchased Merchandise inventory, ending $12,200 45.200 18,200 Cost of Goods Sold is Computed an Cost of goods sold $ Heip have t Subit
Explain how to estimate the average cost of inventory when using the retail inventory method.
Multiple choice
Applying the lower-of-cost-or-market approach, what is the correct value that should be reported on the balance sheet for the inventory?
Select all that apply Determine which of the following statements are correct regarding the difference between physical flow and the cost flow of inventory Check all that apply) A business may adopt any cost flow assumption when accounting for perishable sems Perishable-items Usually have an actual physical flow of FIFO Penshable items neve an actual physical flow of LIFO Cost flow in an assumption about which goods/items are sold Physical flow refers to the actual movement of goods
When the buyer pays the freight costs, the entry to record the payment under a perpetual inventory system would include a debit to _______. Question content area bottom Part 1 A. Freight In B. Inventory C. Purchases Discounts D. Delivery Expense
Question 12 Which report shows the book (purchase or cost) value of inventory items with quantity on hand? Product/Service List O Transaction List by Inventory Item Sales by Product/Service Summary O Inventory Valuation Summary (or Detail)
The Inventory module window has journal icons for Select one: O a. inventory sales and inventory purchases b. item assembly and inventory adjustments O c. inventory sales and inventory adjustments O d. all of the above Show Transcribed Text You should use the adjustments journal to record - Select one: O a. adjustments to inventory purchase prices from the supplier as an allowance for damages O b. adjustments to inventory sale prices to customers as an allowance for damages c. adjustments to inventory in stock for damaged goods O d. all of the above
Bremmer uses a periodic inventory system and the following information is available: Sales Beginning Inventory Ending Inventory Purchases What is the cost of goods sold? Select one: Oa. $230,400 Ob. $96,800 Oc. $133,600 Od. $132,200 $ 230,400 21,200 19,800 132,200
Multiple choice