Bosco Company adopted the dollar value LIFO retail method at the beginning of 2024. Information for 2024 and 2025 is as follows, with certain data intentionally omitted: Required: Determine the missing data. Note: Round "Cost-to-Retail Percentage" to the nearest whole percent (i.e. 0.1234 should be entered as 12.34%). Answer is complete but not entirely correct. Inventory Date Inventory, 1/1/2024 Inventory, 12/31/2024 Cost Retail Retail Price Index Cost-to-Retail Percentago $ 19,500 15 26,000 1.00 75.00 % 27,564 39,200 1.12 80.00 % 2025 net purchases 66,150 98,000 2025 not sales 84,400 Inventory, 12/31/2025 34,368 52,800 20

Bosco Company adopted the dollar value LIFO retail method at the beginning of 2024. Information for 2024 and 2025 is as follows, with certain data intentionally omitted: Required: Determine the missing data. Note: Round "Cost-to-Retail Percentage" to the nearest whole percent (i.e. 0.1234 should be entered as 12.34%). Answer is complete but not entirely correct. Inventory Date Inventory, 1/1/2024 Inventory, 12/31/2024 Cost Retail Retail Price Index Cost-to-Retail Percentago $ 19,500 15 26,000 1.00 75.00 % 27,564 39,200 1.12 80.00 % 2025 net purchases 66,150 98,000 2025 not sales 84,400 Inventory, 12/31/2025 34,368 52,800 20

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 13PA: Company Elmira reported the following cost of goods sold but later realized that an error had been...

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Bosco Company adopted the dollar value LIFO retail method at the beginning of 2024. Information for 2024 and 2025 is as follows, with certain data intentionally omitted: Required: Determine the missing data. Note: Round "Cost-to-Retail Percentage" to the nearest whole percent (i.e. 0.1234 should be entered as 12.34%). I Answer is complete but not entirely correct. Inventory Date Retail Price Cost Retail Index Cost-to-Retail Percentage Inventory, 1/1/2024 $ 19,500 $ 26,000 1.00 75.00 % Inventory, 12/31/2024 27,564 39,200 1.12 80.00 % 2025 net purchases 66,150 98,000 2025 net sales 84,400) Inventory, 12/31/2025 34,368 x 52,800 1.20
Bosco Company adopted the dollar-value LIFO retail method at the beginning of 2024. Information for 2024 and 2025 is as follows. with certain data intentionally omitted: Required: Determine the missing data. Note: Round "Cost-to-Retail Percentage" to the nearest whole percent (i.e., 0.1234 should be entered as 12.34%). Date Inventory 1/1/2024 Inventory, 12/31/2024 2025 net purchases 2025 net sales Inventory, 12/31/2025 $ Cost Inventory 21,000 $ 22,792 60,000 Retail 28,000 33,600 88,400 80,000 Retail Price Index 1.00 1.12 120 Cost-to-Retail Percentage % %
Bosco Company adopted the dollar-value LIFO retail method at the beginning of 2021. Information for 2021 and 2022 is as follows. with certain data intentionally omitted: Required: Determine the missing data. (Round "Cost-to-Retail Percentage" to the nearest whole percent (i.e., 0.1234 should be entered as 12%).) Inventory Retail Cost to Retail Date Cost Retail Price Index Percentage Inventory, 1/12021 Inventory, 12/31/2021 2022 net purchases 22.800 S 30.000 1.00 32.000 46.000 1.15 67,620 98.000 85,500 ces 2022 net sales inventory 12/31/2022 1.30
Exercise 9-15 (Algo) Retail inventory method; LIFO (LO9-3] Crosby Company owns a chain of hardware stores throughout the state. The company uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the three months ending March 31, 2021: Cost Retail Beginning inventory Net purchases Net markups $220,000 697,000 $361,000 830,000 27,000 7,000 825,000 Net markdowns Net sales Required: Complete the table below to estimate the LIFO cost of ending inventory and cost of goods sold for the threefmonths ending March 31, 2021, using the information provided. Assume stable retail prices during the period. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.) X Answer is not complete. Cost-to- Retail Ratio Cost Retail Beginning inventory 220,000 2$ 361,000 Net purchases 697,000 O 830,000 Net markups 27,000 Net…
Sheffield Company began operations on January 1, 2018, and uses the average-cost method of pricing inventory. Management is contemplating a change in inventory methods for 2021. The following information is available for the years 2018–2020. Net Income Computed Using Average-Cost Method FIFO Method LIFO Method 2018 $16,010 $19,020 $12,120 2019 18,070 21,180 13,950 2020 20,200 25,010 17,110 (a) Prepare the journal entry necessary to record a change from the average cost method to the FIFO method in 2021. (b) Determine net income to be reported for 2018, 2019, and 2020, after giving effect to the change in accounting principle. (c) Assume Sheffield Company used the LIFO method instead of the average cost method during the years 2018–2020. In 2021, Sheffield changed to the FIFO method. Prepare the journal entry necessary to record the change in principle.
Tim Mattke Company began operations in 2018 and for simplicity reasons, adopted weighted-average pricing for inventory. In 2020, in accordance with other companies in its industry, Mattke changed its inventory pricing to FIFO. The pretax income data is reported below. Year Weighted-Average FIFO 2018 $370,000 $395,000 2019 390,000 430,000 2020 410,000 450,000 Instructions a. What is Mattke’s net income in 2020? Assume a 20% tax rate in all years. b. Compute the cumulative effect of the change in accounting principle from weighted-average to FIFO inventory pricing. c. Show comparative income statements for Tim Mattke Company, beginning with income before income tax, as presented on the 2020 income statement.
Blossom Company began operations in 2023 and for simplicity reasons, adopted weighted-average pricing for inventory. In 2025, in accordance with other companies in its industry, Blossom changed its inventory pricing to FIFO. The pretax income data is reported below. Year 2023 2024 2025 (a) Weighted-Average $382,100 398,700 421,100 * Your answer is incorrect. FIFO Net income $ $398,800 426,900 466,900 What is Blossom's net income in 2025? Assume a 35% tax rate in all years. 31390 Compute the cumulative effect of the change in accounting principle from weighted-average to FIFO inventory pricing. Net effect $ eTextbook and Media Show comparative income statements for Kingbird Company, beginning with income before income tax, as presented on the 2020 income statement. Income before income tax SU Income tax Net income $ $ 2020 $ $ 2019 $ $ 2018
Required: Complete the table below to estimate the LIFO cost of ending inventory and cost of goods sold using the information provided. Assume stable retail prices during the period. Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign. Beginning inventory Net purchases Net markups Net markdowns Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) Cost-to-retail percentage (beginning) Cost-to-retail percentage (current) Net sales Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold × Answer is not complete. Cost-to-Retail Cost Retail Ratio $ 190,000 $ 290,000 660,000 865,000 20,000 (5,000) 660,000 880,000 850,000 1,170,000 65.52 % 75.00 % (836,000) $ 334,000 (46,008) X
Windsor Company began operations on January 1, 2018, and uses the average-cost method of pricing inventory. Management is contemplating a change in inventory methods for 2021. The following information is available for the years 2018-2020. 2018 2019 2020 Net Income Computed Using Average-Cost Method $16,080 17,980 19,920 FIFO Method LIFO Method $18,980 $11,940 14,020 17,050 20,800 24,890 (a) Prepare the journal entry necessary to record a change from the average cost method to the FIFO method in 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit
Oasis Company has used the dollar-value LIFO method for inventory cost determination for many years. The following data were extracted from Oasis' records. Date PriceIndex Ending Inventory at Base Prices Ending Inventoryat Dollar-Value LIFO December 31, 2020 105 $92,000 $92,600 December 31, 2021 ? 97,000 98,350 Instructions Calculate the index used for 2021 that yielded the above results.
Kingbird Company has used the dollar-value LIFO method for inventory cost determination for many years. The following data were extracted from Kingbird's records. Price Ending Inventory Date Index at Base Prices Ending Inventory at Dollar-Value LIFO December 31, 2025 105 $92,700 $86,600 December 31, 2026 ? 97,700 92,150 Calculate the index used for 2026 that yielded the above results. Index used for 2026
The dollar-value LIFO inventory cost flow method involves computations based on A Specific Price Index for Each Year O O Inventory Pools of Similar Items G No g Yes Yes NO NO Yes Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.