Estimate ending inventory in 2022 using the dollar-value LIFO retail method. (Round your intermediate calculations to the nearest whole dollar. Round ratio calculation to the nearest whole percent.)
Estimate ending inventory in 2022 using the dollar-value LIFO retail method. (Round your intermediate calculations to the nearest whole dollar. Round ratio calculation to the nearest whole percent.)
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:
| Cost | Retail | |||||
| Beginning inventory | $ | 42,350 | $ | 77,000 | ||
| Net purchases | 165,890 | 315,000 | ||||
| Net markups | 9,000 | |||||
| Net markdowns | 11,000 | |||||
| Net sales | 292,000 | |||||
| Retail price index, end of year | 1.04 | |||||
During 2022, purchases at cost and retail were $192,750 and $385,500, respectively. Net markups, net markdowns, and net sales for the year were $4,000, $5,000, and $325,000, respectively. The retail price index at the end of 2022 was 1.05.
Estimate ending inventory in 2022 using the dollar-value LIFO retail method. (Round your intermediate calculations to the nearest whole dollar. Round ratio calculation to the nearest whole percent.)
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