Assignment
On January 1, 2016, ABC Company adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2016 and 2017 are as follows:
|
|
2016
|
2017
|
|
|
Cost
|
Retail
|
Cost
|
Retail
|
|
Beginning inventory
|
$28,000
|
$ 40,000
|
|
|
|
Net purchases
|
85,000
|
108,000
|
$90,000
|
$114,000
|
|
Freight-in
|
2,000
|
|
2,500
|
|
|
Net markups
|
|
10,000
|
|
8,000
|
|
Net markdowns
|
|
2,000
|
|
2,200
|
|
Net sales to customers
|
|
100,000
|
|
104,000
|
|
Price Index:
|
|
|
|
|
|
January 1, 2016
|
|
|
|
1.00
|
|
December 31, 2016
|
|
|
|
1.06
|
|
December 31, 2017
|
|
|
|
1.10
|
Required:
Estimate the 2016 and 2017 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method.