Solve the below problem:
Q: On January 1, 2013, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2013 and 2014 are as follows:
|
2013 |
2014 |
|
|
|
|
Cost |
Retail |
Cost |
Retail |
| Beginning inventory |
$ |
49,000 |
|
$ |
70,000 |
|
|
|
|
|
|
|
| Net purchases |
|
99,250 |
|
|
123,000 |
|
|
105,764 |
|
|
129,700 |
|
| Freight-in |
|
3,500 |
|
|
|
|
|
4,000 |
|
|
|
|
| Net markups |
|
|
|
|
17,500 |
|
|
|
|
|
11,000 |
|
| Net markdowns |
|
|
|
|
3,500 |
|
|
|
|
|
3,700 |
|
| Net sales to customers |
|
|
|
|
124,460 |
|
|
|
|
|
116,240 |
|
| Sales to employees (net of 20% discount) |
|
|
|
|
2,800 |
|
|
|
|
|
6,400 |
|
| Price Index: |
|
|
|
|
|
|
|
|
|
|
|
|
| January 1, 2013 |
|
|
|
|
|
|
|
|
|
|
1.00 |
|
| December 31, 2013 |
|
|
|
|
|
|
|
|
|
|
1.04 |
|
| December 31, 2014 |
|
|
|
|
|
|
|
|
|
|
1.08 |
Required:
Estimate the 2013 and 2014 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method.
2013 2014 Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated COGS
Dollar Value LIFO retail inventory method