On January 1, 2024, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory...
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On January 1, 2024, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2024 and 2025 are as follows:
2024 2025 Cost Retail Cost Retail Beginning inventory $ 39,200 $ 56,000 Net purchases 92,600 116,000 $ 104,166 $ 128,400 Freight-in 2,800 3,300 Net markups 14,000 9,600 Net markdowns 2,800 3,000 Net sales to customers 113,355 117,120 Sales to employees (net of 20% discount) 3,300 5,280 Price Index: January 1, 2024 1.00 December 31, 2024 1.06 December 31, 2025 1.10
Required:
Estimate the 2024 and 2025 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method.
On January 1, 2024, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2024 and 2025 are as follows:
| 2024 | 2025 | |||
|---|---|---|---|---|
| Cost | Retail | Cost | Retail | |
| Beginning inventory | $ 39,200 | $ 56,000 | ||
| Net purchases | 92,600 | 116,000 | $ 104,166 | $ 128,400 |
| Freight-in | 2,800 | 3,300 | ||
| Net markups | 14,000 | 9,600 | ||
| Net markdowns | 2,800 | 3,000 | ||
| Net sales to customers | 113,355 | 117,120 | ||
| Sales to employees (net of 20% discount) | 3,300 | 5,280 | ||
| Price Index: | ||||
| January 1, 2024 | 1.00 | |||
| December 31, 2024 | 1.06 | |||
| December 31, 2025 | 1.10 | |||
Required:
Estimate the 2024 and 2025 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method.
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