On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and re and cost indexes for 2021 and 2022 are as follows: 2021 2022 Cost Retail Cost Retail $162,500 $ 250,000 800,000 7,000 12,500 Beginning inventory Purchases 1,084,000 12,150 $680,000 $1,063,000 2,000 2,000 Purchase returns 4,300 Freight-in Net markups Net markdowns Net sales to customers 11,800 8,000 722,000 22,500 6,900 6,900 4,750 950,000 Sales to employees (net of 25% discount) Normal spoilage 22,500 4, 200 Price Index: January 1, 2021 December 31, 2021 December 31, 2022 1.00 1.25 1.25 Required: 1. Estimate the 2021 and 2022 ending inventory and cost of goods sold using the dollar-value LIFO retail method.

On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and re and cost indexes for 2021 and 2022 are as follows: 2021 2022 Cost Retail Cost Retail $162,500 $ 250,000 800,000 7,000 12,500 Beginning inventory Purchases 1,084,000 12,150 $680,000 $1,063,000 2,000 2,000 Purchase returns 4,300 Freight-in Net markups Net markdowns Net sales to customers 11,800 8,000 722,000 22,500 6,900 6,900 4,750 950,000 Sales to employees (net of 25% discount) Normal spoilage 22,500 4, 200 Price Index: January 1, 2021 December 31, 2021 December 31, 2022 1.00 1.25 1.25 Required: 1. Estimate the 2021 and 2022 ending inventory and cost of goods sold using the dollar-value LIFO retail method.

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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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