On January 1, 2024, Select Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information: Beginning inventory Net purchases Net markups Net markdowns Net sales Retail price index, end of year Beginning inventory Plus: Net purchases Net markups Less: Net markdowns Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) Estimate ending inventory using the dollar-value LIFO retail method. Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.) Base layer cost-to-retail percentage 2024 layer cost-to-retail percentage Less: Net sales Cost $ 40,800 155,440 Estimated ending inventory at current year retail prices Estimated ending inventory at cost Estimated cost of goods sold S Retail $ 68,000 270,000 6,000 8,000 250,000 1.02 Cost 40,800 $ 155,440 155,440 196,240 S Retail 68,000 270,000 6,000 (8,000) 268,000 336,000 (250,000) 86,000 Cost-to-retail ratio 60.00% 58.00%

On January 1, 2024, Select Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information: Beginning inventory Net purchases Net markups Net markdowns Net sales Retail price index, end of year Beginning inventory Plus: Net purchases Net markups Less: Net markdowns Goods available for sale (excluding beginning inventory) Goods available for sale (including beginning inventory) Estimate ending inventory using the dollar-value LIFO retail method. Note: Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.) Base layer cost-to-retail percentage 2024 layer cost-to-retail percentage Less: Net sales Cost $ 40,800 155,440 Estimated ending inventory at current year retail prices Estimated ending inventory at cost Estimated cost of goods sold S Retail $ 68,000 270,000 6,000 8,000 250,000 1.02 Cost 40,800 $ 155,440 155,440 196,240 S Retail 68,000 270,000 6,000 (8,000) 268,000 336,000 (250,000) 86,000 Cost-to-retail ratio 60.00% 58.00%

Name: On January 1, 2024, Select Variety Store adopted the dollar-value LIF
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Description: On January 1, 2024, Select Variety Store adopted the dollar-value LIFO retail inventory method.Accounting records provided the following information:Beginning inventoryNet purchasesNet markupsNet markdownsNet salesRetail price index, end of yearBegi

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 36E: The following data were extracted from the accounting records of Harkins Company for the year ended...

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