Estimate the ending inventory and cost of good sold

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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.

Reference no: EM131765328

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