On January 1, 2024, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2024 and 2025 are as follows: Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 10% discount) Price Index: January 1, 2024 December 31, 2024 December 31, 2025 2024 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Cost $ 42,000 94,500 3,000 2024 Retail $ 60,000 118,000 15,000 3,000 117,360 3,600 2025 Cost 2025 $ 108, 108 3,500 Retail $ 133,200 Required: Estimate the 2024 and 2025 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method. 10,000 3,200 119,890 6,300 Note: Do not round other intermediate calculations. Round your cost-to-retail percentage calculation to 2 decimal places and final answers to the nearest whole dollar. 1.00 1.04 1.09

On January 1, 2024, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2024 and 2025 are as follows: Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 10% discount) Price Index: January 1, 2024 December 31, 2024 December 31, 2025 2024 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Cost $ 42,000 94,500 3,000 2024 Retail $ 60,000 118,000 15,000 3,000 117,360 3,600 2025 Cost 2025 $ 108, 108 3,500 Retail $ 133,200 Required: Estimate the 2024 and 2025 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method. 10,000 3,200 119,890 6,300 Note: Do not round other intermediate calculations. Round your cost-to-retail percentage calculation to 2 decimal places and final answers to the nearest whole dollar. 1.00 1.04 1.09

Name: Manji On January 1, 2024, HGC Camera Store adopted the dollar-value LI
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Description: Manji On January 1, 2024, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventorytransactions at both cost and retail, and cost indexes for 2024 and 2025 are as follows:Beginning inventoryNet purchasesFreight-inNet markupsNe

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 3PEA: Beginning inventory, purchases, and sales for Item Zebra 9x are as follows: Assuming a perpetual...

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Manji

On January 1, 2024, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory
transactions at both cost and retail, and cost indexes for 2024 and 2025 are as follows:
Beginning inventory
Net purchases
Freight-in
Net markups
Net markdowns
Net sales to customers
Sales to employees (net of 10% discount)
Price Index:
January 1, 2024
December 31, 2024
December 31, 2025
Cost
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
2024
2024
42,000
94,500
3,000
Retail
$ 60,000
118,000
15,000
3,000
117,360
3,600
2025
Cost
2025
$ 108, 108
3,500
Retail
$ 133,200
Required:
Estimate the 2024 and 2025 ending inventory and cost of goods sold using the dollar-value LIFO retail
inventory method.
10,000
3,200
119,890
6,300
Note: Do not round other intermediate calculations. Round your cost-to-retail percentage calculation to
2 decimal places and final answers to the nearest whole dollar.
1.00
1.04
1.09

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