Beginning inventory $ 57,200 $ 88,000 Net purchases 231,840 370,000 Net markups 8,000 Net markdowns 10,000 Net sales
Beginning inventory $ 57,200 $ 88,000 Net purchases 231,840 370,000 Net markups 8,000 Net markdowns 10,000 Net sales
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 67P
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On January 1, 2013, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information:
Cost | Retail | |||||
Beginning inventory | $ | 57,200 | $ | 88,000 | ||
Net purchases | 231,840 | 370,000 | ||||
Net markups | 8,000 | |||||
Net markdowns | 10,000 | |||||
Net sales | 347,000 | |||||
Retail price index, end of year | 1.04 | |||||
During 2014, purchases at cost and retail were $293,580 and $489,300, respectively. Net markups, net markdowns, and net sales for the year were $7,000, $8,000, and $380,000, respectively. The retail price index at the end of 2014 was 1.06. |
Calculate the inventory value at the end of 2014 using the dollar-value LIFO retail method. |
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