Chapter 9, Problem 9.15E

Retail inventory method; LIFO

• LO9–3

Crosby Company owns a chain of hardware stores throughout the state. The company uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the three months ending March 31, 2018:

	Cost	Retail
Beginning inventory	$160,000	$280,000
Net purchases	607,760	840,000
Net markups		20,000
Net markdowns		4,000
Net sales		800,000

Required:

Estimate the LIFO cost of ending inventory and cost of goods sold for the three months ending March 31, 2018. Assume stable retail prices during the period.