On January 1, 2021, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The following data are available for 2021: Cost Retail Beginning inventory $ 71,280 $ 132,000 Net purchases 112,500 255,000 Net markups 6,000 Net markdowns 11,000 Net sales 232,000 Retail price index, 12/31/2021 1.04 Required: Calculate the estimated ending inventory and cost of goods sold for 2021 using the information provided. (Do not round intermediate calculations.)
On January 1, 2021, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The following data are available for 2021: Cost Retail Beginning inventory $ 71,280 $ 132,000 Net purchases 112,500 255,000 Net markups 6,000 Net markdowns 11,000 Net sales 232,000 Retail price index, 12/31/2021 1.04 Required: Calculate the estimated ending inventory and cost of goods sold for 2021 using the information provided. (Do not round intermediate calculations.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2021, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The following data are available for 2021:
| Cost | Retail | |||
| Beginning inventory | $ | 71,280 | $ | 132,000 |
| Net purchases | 112,500 | 255,000 | ||
| Net markups | 6,000 | |||
| Net markdowns | 11,000 | |||
| Net sales | 232,000 | |||
| Retail price index, 12/31/2021 | 1.04 | |||
Required:
Calculate the estimated ending inventory and cost of goods sold for 2021 using the information provided. (Do not round intermediate calculations.)
According to my HW the answer is NOT 76,877 for the Ending Inventory at Cost which is what I keep calculating.
Ending inventory at retail $150,000 x 1.04 = 144230.7692
144230.7692-132,000 = 12,230.76923
132,000 x 1 x .54 = 71,280
12230.76923 x 1.04 x .44 = 5,596.797149
5,596.797149 + 71280 = 76,876.79715 = 76,877
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