INTER. ACCOUNTING - CONNECT+ALEKS ACCESS
10th Edition
ISBN: 9781264770335
Author: SPICELAND
Publisher: MCG
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Required:
1. Estimate the 2024 and 2025 ending inventory and cost of goods sold using the dollar-value LIFO retail method.(Calculate the estimated ending inventory at retail, estimated ending inventory at cost, and estimated cost of goods sold)
2. Estimate the 2024 ending inventory and cost of goods sold using the average cost retail method. (Calculate the estimated ending inventory at retail, estimated ending inventory at cost, and estimated cost of goods sold)
3. Estimate the 2024 ending inventory and cost of goods sold using the conventional retail method. (Calculate the estimated ending inventory at retail, estimated ending inventory at cost, and estimated cost of goods sold)
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need help in detail
Canova Corporation adopted the dollar-value LIFO retail method on January 1, 2021. On that date, the cost of the inventory
on hand was $17,000 and its retail value was $20,000. Information for 2021 and 2022 is as follows:
Date
12/31/2021
12/31/2022
Ending Inventory
at Retail
$35,000
$49,000
Retail Price
Index
1.40
1.75
Cost-to-Retail.
Percentage
87 %
90%
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.
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