(b)Assume instead that Indigo decides to adopt the dollar-value LIFO retail method. The appropriate priceindexes are 100 at January 1 and 110 at December 31. Compute the ending inventory to be reported in thebalance sheet. (Round ratios for computational purposes to 2 decimal places, e.g. 78.72% and final answer to 0decimal places, e.g. 28,987.)Ending inventory using the dollar-value LIFO retail method%24 Indigo Corporation began operations on January 1, 2020, with a beginning inventory of $39,940 at cost and$51,000 at retail. The following information relates to 2020.RetailNet purchases ($109,300 at cost)$152,400Net markups9,800Net markdowns5,100Sales revenue129,300

The retail inventory method is used to calculate the cost of the store’s merchandise. Using this…

Indigo Corporation began operations on January 1, 2020, with a beginning inventory of $39,940 at cost and $51,000 at retail. The following information relates to 2020. Retail Net purchases ($109,300 at cost) $152,400 Net markups 9,800 Net markdowns 5,100 Sales revenue 129,300

Indigo Corporation began operations on January 1, 2020, with a beginning inventory of $39,940 at cost and $51,000 at retail. The following information relates to 2020. Retail Net purchases ($109,300 at cost) $152,400 Net markups 9,800 Net markdowns 5,100 Sales revenue 129,300

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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On January 1, 2024, Select Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information: Cost Retail Beginning inventory $ 40,800 $ 68,000 Net purchases 155,440 270,000 Net markups 6,000 Net markdowns 8,000 Net sales 250,000 Retail price index, end of year 1.02 During 2025 (the following year), purchases at cost and retail were $168,000 and $301,000, respectively. Net markups, net markdowns, and net sales for the year were $3,000, $4,000, and $280,000, respectively. The retail price index at the end of 2025 was 1.06. Estimate ending inventory in 2025 using the dollar-value LIFO retail method. Note: Round ratio calculation to 2 decimal places and round other intermediate calculations and final answer to the nearest whole dollar. Ending Inventory ________
Condy Co. paid suppliers of merchandise inventory $700,000 during 2020. During 2020, inventory increased from a $92,000 beginning balance to a $105,000 ending balance, and accounts payable decreased from a $48,000 beginning balance to a $38,000 ending balance. How much was cost of goods sold in 2020? Select one: a. $682,000 b. $687,000 c. $692,000 d. $702,000 e. $677,000
Coronado Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was the purchase of inventory on December 10, 2019, at a cost of $23 per unit. None of this inventory was sold in 2019. Relevant information is as follows. Ending inventory units December 31, 2019 165 December 31, 2020, by purchase date December 2, 2020 165 July 20, 2020 50 215 During the year 2020, the following purchases and sales were made. Purchases Sales March 15 365 units at $28 April 10 265 July 20 365 units at 29 August 20 365 September 4 265 units at 32 November 18 215 December 2 165 units at 35 December 12 265 The company uses the periodicinventory method. (a1) X Your answer is incorrect. Calculate average-cost per unit. (Round answer to 2 decimal places, e.e. 2.76.) Average-cost 27.32
On January 1, 2021, Sanderson 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 Cost $ 40,800 155,440 Retail $ 68,000 270,000 6,000 8,000 250,000 1.02 During 2022, purchases at cost and retail were $168,000 and $301,000, respectively. Net markups, net markdowns, and net sales for the year were $3,000, $4,000, and $280,000, respectively. The retail price index at the end of 2022 was 1.06. Estimate ending Inventory in 2022 using the dollar-value LIFO retail method. (Round your intermediate calculations to the nearest whole dollar.) Answer is complete but not entirely correct. Ending inventory S 50,451
On January 1, 2021, Sanderson 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 Cost $50,400 201,840 During 2022, purchases at cost and retail were $248,655 and $452,100, respectively. Net markups, net markdowns, and net sales for the year were $3,000, $4,000, and $360,000, respectively. The retail price index at the end of 2022 was 1.06. Ending inventory Retail $ 84,000 350,000 10,000 12,000 327,000 1.04 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.) $ 175,100
During 2021, a company sells 340 units of inventory for $90 each. The company has the following inventory purchase transactions for 2021: Date Transaction inventory Number of units Unit cost Total Cost Jan. 1 Beginning inventory 69 $62 $4,278 May 5 Purchase 168 63 10,584 Nov. 3 Purchase 181 65 11,765 418 26,627 Calculate ending inventory and cost of goods sold for 2021 assuming the company uses FIFO. Ending inventory Cost of goods sold
Sunland Company's inventory on January 1, 2025, at cost and retail are $97,500 and $141,000, respectively. Sunland established its base year amounts on January 1, 2025. The current year price index was 1.20. Sunland also had the following information: Purchases Sales Mark-ups Mark-downs Cost $195,000 Retail $282,000 243,000 19,740 (11,280) Determine ending inventory using: (Round ratio to 2 decimal places, e.g. 75.35% and final answer to O decimal places, e.g. 5,275.) (a) LIFO retail. (b) Dollar Value LIFO. (a) Ending inventory under LIFO retail $ tA (b) Ending inventory under Dollar Value LIFO $
A company reports the following financial information: Inventory, December 31, 2019 Inventory, December 31, 2020 Net Sales for 2020 $ 75,000 125,000 850,000 Cost of Goods Sold for 2020 400,000 The company's inventory turnover ratio is closest to O 0.19 times O 4.00 times O 2.13 times O 5.33 times
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The following information was available for Concord Company at December 31, 2020: beginning inventory $163000; ending inventory $117000; cost of goods sold $1330000; and sales $1360000. Concord's inventory turnover in 2020 was O 9.5 times. O 9.7 times. O 11.4 times. O 8.2 times.
Mahoney, Inc. reports the following information in its annual report: January 1, 2024 December 31, 2024 Inventory value at LIFO $1,500,000 $1,600,000 LIFO reserve 40,000 50,000 Inventory value at FIFO $ 1,540,000 $1,650,000 Sales for 2024 totaled $10,000,000. Cost of goods sold under LIFO totaled $ 6,700,000. What is Mahoney's 2024 inventory balance, cost of goods sold and gross profit if it uses the FIFO method?
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 $ 49,000 $ 70,000 Net purchases 189,040 280,000 Net markups 8,000 Net markdowns 10,000 Net sales 265,000 Retail price index, end of year 1.02 During 2022, purchases at cost and retail were $210,990 and $324,600, respectively. Net markups, net markdowns, and net sales for the year were $5,000, $6,000, and $290,000, respectively. The retail price index at the end of 2022 was 1.06.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.)