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ces On January 1, 2024, Select 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 Beginning inventory Plus: Net purchases Net markups Less: Net markdowns Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) Estimate ending inventory using the dollar-value LIFO retail method. Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.) Base layer cost-to-retail percentage 2024 layer cost-to-retail percentage Less: Net sales Cost $ 40,800 155,440 Estimated ending inventory at current year retail prices Estimated ending inventory at cost Estimated cost of goods sold $ Retail $ 68,000 270,000 6,000 8,000 250,000 1.02 Cost 40,800 $ 155,440 155,440 196,240 $ Retail 68,000 270,000 6,000 (8,000) 268,000 336,000 (250,000) 86,000 Cost-to-retail ratio

ces On January 1, 2024, Select 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 Beginning inventory Plus: Net purchases Net markups Less: Net markdowns Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) Estimate ending inventory using the dollar-value LIFO retail method. Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.) Base layer cost-to-retail percentage 2024 layer cost-to-retail percentage Less: Net sales Cost $ 40,800 155,440 Estimated ending inventory at current year retail prices Estimated ending inventory at cost Estimated cost of goods sold $ Retail $ 68,000 270,000 6,000 8,000 250,000 1.02 Cost 40,800 $ 155,440 155,440 196,240 $ Retail 68,000 270,000 6,000 (8,000) 268,000 336,000 (250,000) 86,000 Cost-to-retail ratio

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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ces On January 1, 2024, Select 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 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 2024 layer cost-to-retail percentage Less: Net sales Cost $ 40,800 155,440 Estimate ending inventory using the dollar-value LIFO retail method. Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.) Estimated ending inventory at current year retail prices Estimated ending inventory at cost Estimated cost of goods sold $ Cost Retail $ 68,000 270,000 6,000 8,000 250,000 1.02 40,800 $ 155,440 155,440 196,240 I $ Retail 68,000 270,000 6,000 (8,000) 268,000 336,000 (250,000) 86,000 Cost-to-retail ratio
Transcribed Image Text:ces On January 1, 2024, Select 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 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 2024 layer cost-to-retail percentage Less: Net sales Cost $ 40,800 155,440 Estimate ending inventory using the dollar-value LIFO retail method. Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.) Estimated ending inventory at current year retail prices Estimated ending inventory at cost Estimated cost of goods sold $ Cost Retail $ 68,000 270,000 6,000 8,000 250,000 1.02 40,800 $ 155,440 155,440 196,240 I $ Retail 68,000 270,000 6,000 (8,000) 268,000 336,000 (250,000) 86,000 Cost-to-retail ratio
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