On January 1, 2024, Select Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information: Cost Retail Beginning inventory $ 40,800 $ 68,000 Net purchases 155,440 270,000 Net markups 6,000 Net markdowns 8,000 Net sales 250,000 Retail price index, end of year 1.02 During 2025 (the following year), purchases at cost and retail were $168,000 and $301,000, respectively. Net markups, net markdowns, and net sales for the year were $3,000, $4,000, and $280,000, respectively. The retail price index at the end of 2025 was 1.06. Estimate ending inventory in 2025 using the dollar-value LIFO retail method. Note: Round ratio calculation to 2 decimal places and round other intermediate calculations and final answer to the nearest whole dollar. Ending Inventory ________
On January 1, 2024, Select Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information: Cost Retail Beginning inventory $ 40,800 $ 68,000 Net purchases 155,440 270,000 Net markups 6,000 Net markdowns 8,000 Net sales 250,000 Retail price index, end of year 1.02 During 2025 (the following year), purchases at cost and retail were $168,000 and $301,000, respectively. Net markups, net markdowns, and net sales for the year were $3,000, $4,000, and $280,000, respectively. The retail price index at the end of 2025 was 1.06. Estimate ending inventory in 2025 using the dollar-value LIFO retail method. Note: Round ratio calculation to 2 decimal places and round other intermediate calculations and final answer to the nearest whole dollar. Ending Inventory ________
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 67P
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Question
On January 1, 2024, Select Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information:
| Cost | Retail | |
|---|---|---|
| Beginning inventory | $ 40,800 | $ 68,000 |
| Net purchases | 155,440 | 270,000 |
| Net markups | 6,000 | |
| Net markdowns | 8,000 | |
| Net sales | 250,000 | |
| Retail price index, end of year | 1.02 |
During 2025 (the following year), purchases at cost and retail were $168,000 and $301,000, respectively. Net markups, net markdowns, and net sales for the year were $3,000, $4,000, and $280,000, respectively. The retail price index at the end of 2025 was 1.06. Estimate ending inventory in 2025 using the dollar-value LIFO retail method.
Note: Round ratio calculation to 2 decimal places and round other intermediate calculations and final answer to the nearest whole dollar.
Ending Inventory ________
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