On January 1, 2013, the Brunswick Hat Company adopted the dollar-value LIFO reta

Question

On January 1, 2013, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The following data are available for 2013:

Calculate the estimated ending inventory and cost of goods sold for 2013. Do not round intermediate answers. Find ending inventory at retail, ending inventory at cost and cost of goods sold.

Cost Retail   Beginning inventory $ 65,000 $ 130,000   Net purchases 100,000 253,000   Net markups 7,000   Net markdowns 10,000   Net sales 237,000   Retail price index, 12/31/13 1.04

Explanation / Answer

Ending inventory at retail
Purchase price = 253000+7000=260000
Sale price= 237000-10000= 227000

Ending inventoryat retail= 130000+260000-227000=163000

Ending inventory at cost=65000+100000= 165000

cost of goods sold =Opening inventory+purchases-closing inventory

130000+260000-163000= 227000

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