Flint Department Store wishes to use the retail LIFO method of valuing inventories for 2018. The appropriate data are as follows: At Cost At Retail December 31, 2017 inventory (base layer) $1,250,000 $2,100,000 Purchases (net of returns, allowances, markups, and markdowns) 2,100,000 3,500,000 Sales revenue 3,185,000 Price index for 2018 105 Instructions Complete the following schedule (fill in all blanks and show calculations in the parentheses): Computation of Retail Inventory for 2018 Cost Retail Ratio Inventory, December 31, 2017 _________ _________ _____ Purchases (net of returns, allowances, markups, and markdowns) _________ _________ _____ Total available _________ _________ _____ ____________________________________ Inventory, December 31, 2018, at retail $5,600,000 Adjustment of Inventory to LIFO Basis Cost Retail Ending inventory at base year prices ______ ______ ( ) Beginning inventory at base year prices _______ _______ Increase at base year prices _______ _______ Increase at 2018 retail ( ) _______ _______ Increase at 2018 cost ( ) ________ _______ Inventory, December 31, 2018, at LIFO cost
Flint Department Store wishes to use the retail LIFO method of valuing inventories for 2018. The appropriate data are as follows:
At Cost At Retail
December 31, 2017 inventory (base layer) $1,250,000 $2,100,000
Purchases (net of returns, allowances, markups, and markdowns) 2,100,000 3,500,000
Sales revenue 3,185,000
Price index for 2018 105
Instructions
Complete the following schedule (fill in all blanks and show calculations in the parentheses):
Computation of Retail Inventory for 2018 Cost Retail Ratio
Inventory, December 31, 2017 _________ _________ _____
Purchases (net of returns, allowances,
markups, and markdowns) _________ _________ _____
Total available _________ _________ _____
____________________________________
Inventory, December 31, 2018, at retail $5,600,000
Adjustment of Inventory to LIFO Basis Cost Retail
Ending inventory at base year prices ______ ______
( )
Beginning inventory at base year prices _______ _______
Increase at base year prices _______ _______
Increase at 2018 retail ( ) _______ _______
Increase at 2018 cost ( ) ________ _______
Inventory, December 31, 2018, at LIFO cost _________ ________
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