On January 1, 2018, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2018 and 2019 are as follows: 2018 2019 Cost Retail Cost Retail Beginning inventory $ 42,000 $ 60,000 Net purchases 94,500 118,000 $ 108,108 $ 133,200 Freight-in 3,000 3,500 Net markups 15,000 10,000 Net markdowns 3,000 3,200 Net sales to customers 117,360 119,890 Sales to employees (net of 10% discount) 3,600 6,300 Price Index: January 1, 2018 1.00 December 31, 2018 1.04 December 31, 2019 1.09 Required:Estimate the 2018 and 2019 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method. I keep getting the following and do not understand why is marked wrong Cost Retail Cost Retail Beginning Inv. 42000 60000 70% 43578 64504 Purchases 94500 118000 108,108 133,200 Freight in 3000 0 3,500 0 0 0 0 0 Net Markup 0 15000 0 10,000 Net Markdown 0 -3000 0 -3200 0 0 0 0 excluding beg. 97500 130000 75% 111,608 140,000 80% goods available 139500 190000 155,186 204,504 0 0 0 0 Net Sales -125496 -126190 Ending inventory 43578 64504 52145.08 78,314
On January 1, 2018, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2018 and 2019 are as follows: 2018 2019 Cost Retail Cost Retail Beginning inventory $ 42,000 $ 60,000 Net purchases 94,500 118,000 $ 108,108 $ 133,200 Freight-in 3,000 3,500 Net markups 15,000 10,000 Net markdowns 3,000 3,200 Net sales to customers 117,360 119,890 Sales to employees (net of 10% discount) 3,600 6,300 Price Index: January 1, 2018 1.00 December 31, 2018 1.04 December 31, 2019 1.09 Required:Estimate the 2018 and 2019 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method. I keep getting the following and do not understand why is marked wrong Cost Retail Cost Retail Beginning Inv. 42000 60000 70% 43578 64504 Purchases 94500 118000 108,108 133,200 Freight in 3000 0 3,500 0 0 0 0 0 Net Markup 0 15000 0 10,000 Net Markdown 0 -3000 0 -3200 0 0 0 0 excluding beg. 97500 130000 75% 111,608 140,000 80% goods available 139500 190000 155,186 204,504 0 0 0 0 Net Sales -125496 -126190 Ending inventory 43578 64504 52145.08 78,314
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
On January 1, 2018, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2018 and 2019 are as follows:
2018 | 2019 | |||||||||||
Cost | Retail | Cost | Retail | |||||||||
Beginning inventory | $ | 42,000 | $ | 60,000 | ||||||||
Net purchases | 94,500 | 118,000 | $ | 108,108 | $ | 133,200 | ||||||
Freight-in | 3,000 | 3,500 | ||||||||||
Net markups | 15,000 | 10,000 | ||||||||||
Net markdowns | 3,000 | 3,200 | ||||||||||
Net sales to customers | 117,360 | 119,890 | ||||||||||
Sales to employees (net of 10% discount) | 3,600 | 6,300 | ||||||||||
Price Index: | ||||||||||||
January 1, 2018 | 1.00 | |||||||||||
December 31, 2018 | 1.04 | |||||||||||
December 31, 2019 | 1.09 | |||||||||||
Required:
Estimate the 2018 and 2019 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method.
I keep getting the following and do not understand why is marked wrong
Cost | Retail | Cost | Retail | |||
Beginning Inv. | 42000 | 60000 | 70% | 43578 | 64504 | |
Purchases | 94500 | 118000 | 108,108 | 133,200 | ||
Freight in | 3000 | 0 | 3,500 | 0 | ||
0 | 0 | 0 | 0 | |||
Net Markup | 0 | 15000 | 0 | 10,000 | ||
Net Markdown | 0 | -3000 | 0 | -3200 | ||
0 | 0 | 0 | 0 | |||
excluding beg. | 97500 | 130000 | 75% | 111,608 | 140,000 | 80% |
goods available | 139500 | 190000 | 155,186 | 204,504 | ||
0 | 0 | 0 | 0 | |||
Net Sales | -125496 | -126190 | ||||
Ending inventory | 43578 | 64504 | 52145.08 | 78,314 |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 7 steps with 5 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education