INTERMEDIATE ACCOUNTING
3rd Edition
ISBN: 9780136946694
Author: GORDON
Publisher: RENT PEARS
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Chapter 10, Problem 10.21E
Dollar-Value LIFO Retail Inventory Method. Zorinak, Inc. uses the dollar-value LIFO retail inventory method for costing inventory. It has beginning inventory costing $ 154,000 at a cost-to-retail ratio of 72%. During the year Zorinak purchased goods with a cost basis of $770,000 and a retail value of $1,100,000. It had net markups of $33,000 and net markdowns of $49,500. Zorinak sold 80% of its goods available for sale during the year. The current-year price index is 1.03. What is Zorinak’s ending inventory at cost and retail using the dollar-value LIFO retail method? Round percentages to two decimal places.
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Sales during the year were 1,220 units. Beginning inventory was 380 units at a cost of $6 per unit. Purchase 1 was 610 units at $7 per unit. Purchase 2 was 940 units at $8 per unit.
Required:
a. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using FIFO method. (Enter all values as a positive value.)
b. Assume the periodic inventory system is used. Calculate cost of goods sold and ending inventory using LIFO method. (Enter all values as a positive value.)
Chapter 10 Solutions
INTERMEDIATE ACCOUNTING
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