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Estimating Inventory Using LIFO Retail Method Dean Company uses the retail inventory method to estimate its inventory for interim statement purposes. Data relating to the inventory at July 31 follow. For Six-Months Ended July 31 Beginning inventory, January 31 Purchases Markups, net Sales Markdowns, net Cost Retail $810,000 $1,125,000 4,590,000 7,087,500 787,500 7,762,500 562,500 Required Estimate inventory at July 31 using the LIFO retail method.

Estimating Inventory Using LIFO Retail Method Dean Company uses the retail inventory method to estimate its inventory for interim statement purposes. Data relating to the inventory at July 31 follow. For Six-Months Ended July 31 Beginning inventory, January 31 Purchases Markups, net Sales Markdowns, net Cost Retail $810,000 $1,125,000 4,590,000 7,087,500 787,500 7,762,500 562,500 Required Estimate inventory at July 31 using the LIFO retail method.

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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Lastly, estimate inventory at July 31 using the LIFO retail method by completing the following table. •Note: Use the result EXACTLY as displayed above in the calculations below. Current Year Inventory at Year-End Retail Prices Inventory Layers at Retail Prices 0 Beginning Inventory $ Current Year $ Layers at Retail Prices 0 0 Cost Ratio 0 $ 0 $ Current Year Ending Inventory at LIFO Cost 0 0 0
Transcribed Image Text:Lastly, estimate inventory at July 31 using the LIFO retail method by completing the following table. •Note: Use the result EXACTLY as displayed above in the calculations below. Current Year Inventory at Year-End Retail Prices Inventory Layers at Retail Prices 0 Beginning Inventory $ Current Year $ Layers at Retail Prices 0 0 Cost Ratio 0 $ 0 $ Current Year Ending Inventory at LIFO Cost 0 0 0
Estimating Inventory Using LIFO Retail Method Dean Company uses the retail inventory method to estimate its inventory for interim statement purposes. Data relating to the inventory at July 31 follow. Retail For Six-Months Ended July 31 Cost Beginning inventory, January 31 $810,000 $1,125,000 Purchases 4,590,000 7,087,500 Markups, net 787,500 Sales 7,762,500 Markdowns, net 562,500 Required Estimate inventory at July 31 using the LIFO retail method. First, compute current year-end inventory at retail prices: • Note: Do not use negatives signs with your answers. Total goods available for sale at retail $ Less: Net sales Estimated ending inventory at retail $ Next, compute the cost ratios: Cost Ratio Beginning Inventory Current Year Numerator 0 + 0+ 0 0 0 Denominator 0 = 0 = Result
Transcribed Image Text:Estimating Inventory Using LIFO Retail Method Dean Company uses the retail inventory method to estimate its inventory for interim statement purposes. Data relating to the inventory at July 31 follow. Retail For Six-Months Ended July 31 Cost Beginning inventory, January 31 $810,000 $1,125,000 Purchases 4,590,000 7,087,500 Markups, net 787,500 Sales 7,762,500 Markdowns, net 562,500 Required Estimate inventory at July 31 using the LIFO retail method. First, compute current year-end inventory at retail prices: • Note: Do not use negatives signs with your answers. Total goods available for sale at retail $ Less: Net sales Estimated ending inventory at retail $ Next, compute the cost ratios: Cost Ratio Beginning Inventory Current Year Numerator 0 + 0+ 0 0 0 Denominator 0 = 0 = Result
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