On January 1, 2024, Select 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 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. Ending inventory Note: Round ratio calculation to 2 decimal places and round other intermediate calculations and final answer to the nearest whole dollar.
On January 1, 2024, Select 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 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. Ending inventory Note: Round ratio calculation to 2 decimal places and round other intermediate calculations and final answer to the nearest whole dollar.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2024, Select 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 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.
Ending inventory
Note: Round ratio calculation to 2 decimal places and round other intermediate calculations and final
answer to the nearest whole dollar.
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