Required information [The following information applies to the questions displayed below.] On January 1, 2024, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2024 and 2025 are as follows: Beginning inventory Purchases Purchase returns Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 20% discount) Normal spoilage Price Index: January 1, 2024 December 31, 2024 December 31, 2025 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 2024 Average Cost Retail Method Cost $ 93,000 520,000 4,100 6,500 1.00 1.25 1.40 Retail $ 155,000 Cost 817,000 $ 502,000 1,750 2,500 6,000 5,000 4,000 670,000 12,000 4,000 2025 Retail $ 842,500 1,900 equired: Estimate the 2024 ending inventory and cost of goods sold using the average cost retail method. ote: Round your cost-to-retail percentage to 2 decimal places and round your final answers to nearest whole dollar. 8,000 6,100 660,000 12,000 5,000

Required information [The following information applies to the questions displayed below.] On January 1, 2024, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2024 and 2025 are as follows: Beginning inventory Purchases Purchase returns Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 20% discount) Normal spoilage Price Index: January 1, 2024 December 31, 2024 December 31, 2025 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 2024 Average Cost Retail Method Cost $ 93,000 520,000 4,100 6,500 1.00 1.25 1.40 Retail $ 155,000 Cost 817,000 $ 502,000 1,750 2,500 6,000 5,000 4,000 670,000 12,000 4,000 2025 Retail $ 842,500 1,900 equired: Estimate the 2024 ending inventory and cost of goods sold using the average cost retail method. ote: Round your cost-to-retail percentage to 2 decimal places and round your final answers to nearest whole dollar. 8,000 6,100 660,000 12,000 5,000

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Description: Required information[The following information applies to the questions displayed below.]On January 1, 2024, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail,and cost indexes for 2024 and 2025 a

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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Exit Marilee's Electronics uses a periodic inventory system and the average cost retail method to estimate ending inventory and cost of goods sold, The following data is available from the company records for the month of June 2021: Cost Retail Beginning inventory Net purchases Net markups Net markdowns Net sales $ 82,500 $131, 000 505,000 269,000 25,500 36,000 525, 000 The average cost-to-retail percentage is: Muitipte Choice O 56.0%. < Prev 15 of 15 Next
Inventory Estimation (MODIFIED) During 2020, Reliable Hardware Store had the following selected accounts and balances: Net Sales Net Purchases Beginning Inventory Php 6,000,000 4,100,000 200,000 The physical count of inventory on hand at December 31, 2020 amounted to Php 240,000. Reliable had consistently followed its policy of having a 50% mark-up on cost. REQUIRED: A. Compute the inventory shrinkage. B. The owner of the business believes that the inventory shrinkage was due to shoplifting and intends to hire a security guard with a monthly salary of Php 10,000 to once and for all stop this practice. Is this a wise decision? Explain. Is there an alternative solution and when should this plan of action be adopted?
Show Attempt History Current Attempt in Progress You are provided with the following information for Waterway Inc. for the month ended June 30,2020. Waterway uses the periodic method for inventory. Unit Cost or Date Description Quantity Selling Price June Beginning inventory 42 $41 June 4 Purchase 135 46 June 10 Sale 107 67 June 11 Sale return 18 67 June 18 Purchase 52 49 June 18 Purchase return 8. 49 June 25 Sale 62 72 June 28 Purchase 32 53 (a1) Your answer is correct. Calculate cost per unit. (Round answer to 2 decimal places, eg 5.25.) Weighted-average cost per unit 24 46.58 eTextbook and Media Attempts: 1 of 3 used (a2) Calculate ending inventory, cost of goods sold, gross profit under each of the following methods. (1) LIFO. (2) FIFO. (3) Average- cost. (Round average-cost method answers to 2 decimal places, eg. 1,250.25 and other answers to O decimal places, eg 1,250) LIFO FIFO AVERAGE-COST The ending %24 inventory The cost of goods %24 %$4 %24 sold Gross profit %24
During 2020, Liberty Company has the following inventory transactions. Date Transaction Units Cost Total Cost Jan. 1 Beginning inventory 10 $430 $4,300 Apr. 9 Purchase 22 470 10,340 Oct. 4 Purchase 18 400 7,200 Total Purchases 50 $21,840 Total Sales Jan. 1-Dec. 31 Sales for 2020 44 $30,580 Required: 1. Using FIFO, calculate ending inventory, cost of goods sold and gross profit. 2. Using LIFO, calculate ending inventory, cost of goods sold and gross profit. 3. Using Weighted Average, calculate ending inventory, cost of goods sold and gross profit. 4. At the end of 2020, Liberty Company determines the remaining 6 units only have a market value of $300 per unit using the lower of cost or market (LCM) procedure under FIFO. Create a journal entry to record the necessary adjustment.
Sheffield Company began operations on January 1, 2018, and uses the average-cost method of pricing inventory. Management is contemplating a change in inventory methods for 2021. The following information is available for the years 2018–2020. Net Income Computed Using Average-Cost Method FIFO Method LIFO Method 2018 $16,010 $19,020 $12,120 2019 18,070 21,180 13,950 2020 20,200 25,010 17,110 (a) Prepare the journal entry necessary to record a change from the average cost method to the FIFO method in 2021. (b) Determine net income to be reported for 2018, 2019, and 2020, after giving effect to the change in accounting principle. (c) Assume Sheffield Company used the LIFO method instead of the average cost method during the years 2018–2020. In 2021, Sheffield changed to the FIFO method. Prepare the journal entry necessary to record the change in principle.
On January 1, 2019, Lexor Company adopted the dollar-value-LIFO method of inventory costing. Lexor's ending inventory records appear as follows: Year Current cost Index 2019 $ 42,000 100 (1.00) 2020 58,000 110 (1.10) 2021 60,100 120 (1.20) 2022 68,200 130 (1.30) Compute the ending inventory for the years 2019, 2020, 2021, and 2022, using the dollar-value LIFO method. Round to the nearest dollar. Show all work. You can use the previous homework template that you used for
The following information applies to the questions displayed below.] On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2021 and 2022 are as follows: 2021 2022 Cost Retail Cost Retail Beginning inventory $ 159,250 $ 245,000 Purchases 450,000 631,000 $ 685,000 $ 918,000 Purchase returns 4,500 3,550 4,100 4,500 Freight-in 7,200 7,000 Net markups 5,900 11,600 Net markdowns 4,600 7,900 Net sales to customers 500,000 720,000 Sales to employees (net of 20% discount) 24,000 24,000 Normal spoilage 3,500 6,800 Price Index: January 1, 2021 1.00 December 31, 2021 1.25 December 31, 2022 1.25
Windsor Company began operations on January 1, 2018, and uses the average-cost method of pricing inventory. Management is contemplating a change in inventory methods for 2021. The following information is available for the years 2018-2020. 2018 2019 2020 Net Income Computed Using Average-Cost Method $16,080 17,980 19,920 FIFO Method LIFO Method $18,980 $11,940 14,020 17,050 20,800 24,890 (a) Prepare the journal entry necessary to record a change from the average cost method to the FIFO method in 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit
Required information Problem 9-13 (Algo) Retail inventory method; various applications [LO9-3, 9-4, 9-5] [The following information applies to the questions displayed below.] On January 1, 2021, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2021 and 2022 are as follows: Beginning inventory Purchases Purchase returns Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 20% discount) Normal spoilage Price Index: January 1, 2021 December 31, 2021 December 31, 2022 Problem 9-13 (Algo) Part 3 X Answer is complete but not entirely correct. Conventional Retail Method Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold $ $ $ 2021 950,400 X 725,191 X 725,191 x Cost Retail $105,400 $170,000 430,000 622,000 4,000 2,900 6,200 1.00 1.04 1.20 5,150 4,150 500,000 14,400 1,900 Cost 2022 Required: 3. Estimate the 2021 ending inventory and…
PROBLEM 1. Wharf Company uses a perpetual inventory system and values its inventory at lower of cost or market. Its accounting records indicate the following information relating to inventory: Inventory Cost $ 60,000 Date January 1, 2019 December 31, 2019 December 31, 2020 Market $ 60,000 102,000 88,000 115,000 109,000 Required: Prepare the required journal entries at December 31, 2019, and December 31, 2020, to record the inventory at lower of cost or market using the following methods: a. Direct method b. Allowance method
Estimating Inventory Using Retail Inventory Method—Conventional Retail-Mart values its inventory using the conventional retail inventory method. It discloses the following data for the month of June 2020. Cost Selling Price Inventory, June 1 $172,160 $256,000 Markdowns 67,200 Markups 92,800 Markdown cancellations 32,000 Markup cancellations 28,800 Purchases 554,240 715,520 Sales 800,000 Purchase returns and allowances 9,600 11,520 Sales returns and allowances 32,000 Compute estimated inventory at June 30, 2020, using the conventional retail inventory method. $Answer
Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2021. On that date, the cost of the inventory on hand was $19,000 and its retail value was $25,000. Information for 2021 and 2022 is as follows: Date 12/31/2021 12/31/2022 Ending Inventory at Retail $39,000 $51,000 Required 1 Required 2 Retail Price Required: 1. What is the cost-to-retail percentage for the inventory on hand at 1/1/2021? 2. Calculate the inventory value at the end of 2021 and 2022 using the dollar-value LIFO retail method. Ending inventory Index 1.30 1.50 Complete this question by entering your answers in the tabs below. 2021 Calculate the inventory value at the end of 2021 and 2022 using the dollar-value LIFO retail method. (Round your answers to the nearest whole dollar amount.) Cost-to-Retail Percentage 78% 80% 2022