Exercise 9-21 (Algo) Dollar-value LIFO retail (LO9-5]Lance-Hefner Specialty Shoppes decided to use the dollar-value LIFO retail method to value its inventory. Accounting records providethe following information:CostRetailMerchandise inventory, January 1, 2021Net purchasesNet markupsNet markdowns$245,000 $350,000458,800 615,00018,00013,000460,000Net salesRelated retail price indexes are as follows:January 1, 2021December 31, 20211.001.20Required:Determine ending inventory and cost of goods sold using the information provided.Ending inventory at retail161,300 XEnding inventory at cost$97,782 XCost of goods sold$194,898 X

Name: Exercise 9-21 (Algo) Dollar-value LIFO retail (LO9-5]Lance-Hefner Spe
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Description: Exercise 9-21 (Algo) Dollar-value LIFO retail (LO9-5]Lance-Hefner Specialty Shoppes decided to use the dollar-value LIFO retail method to value its inventory. Accounting records providethe following information:CostRetailMerchandise inventory, Janua

LIFO is the method in which goods received last are issued first and goods received first are issued…

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ance-Hefner Specialty Shoppes decided to use the dollar-value LIFO retail method to value its inventory. Accounting records provide ne following information: Cost Retail Merchandise inventory, January 1, 2021 Net purchases Net markups Net markdowns $245,000 $350,000 615,000 18,000 13,000 460,000 458,800 Net sales Related retail price indexes are as follows: January 1, 2021 December 31, 2021 1.00 1.20 Required: Determine ending inventory and cost of goods sold using the information provided. Ending inventory at retail 161,300 X 97,782 X Ending inventory at cost Cost of goods sold $ $ 194,898 X

ance-Hefner Specialty Shoppes decided to use the dollar-value LIFO retail method to value its inventory. Accounting records provide ne following information: Cost Retail Merchandise inventory, January 1, 2021 Net purchases Net markups Net markdowns $245,000 $350,000 615,000 18,000 13,000 460,000 458,800 Net sales Related retail price indexes are as follows: January 1, 2021 December 31, 2021 1.00 1.20 Required: Determine ending inventory and cost of goods sold using the information provided. Ending inventory at retail 161,300 X 97,782 X Ending inventory at cost Cost of goods sold $ $ 194,898 X

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 37BE: Lower of Cost or Market Garcia Company uses FIFO, and its inventory at the end of the year was...

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E8.12 (LO 3) (FIFO, LIFO, Average-Cost Inventory) Shania Twain Company was formed onDecember 1, 2019. The following information is available from Twain’s inventory records for Product BAP. Units Unit CostJanuary 1, 2020 (beginning inventory) 600 $ 8.00Purchases:January 5, 2020 1,200 9.00January 25, 2020 1,300 10.00February 16, 2020 800 11.00March 26, 2020 600 12.00 A physical inventory on March 31, 2020, shows 1,600 units on hand.InstructionsPrepare schedules to compute the ending inventory at March 31, 2020, under each of the following inventory methods.a. FIFO b. LIFO. c. Weighted-average (round unit costs to two decimal places)
Lance-Hefner Specialty Shoppes decided to use the dollar-value LIFO retail method to value its inventory. Accounting records provide the following information: Cost RetailMerchandise inventory, January 1, 2021 $160,000 $250,000Net purchases 350,200 510,000Net markups 7,000Net markdowns 2,000Net sales 380,000 Related retail price indexes are as follows: January 1, 2021 1.00 December 31, 2021 1.10 Required:Determine ending inventory…
27.Lychee Company uses the retail method of inventory valuation. The following information is available:Beginning inventory: P186,196 at cost; P302,250 at retailPurchases: P703,740 at cost; P1,120,000 at retailFreight in: P12,400Purchase discounts: P14,400Purchase returns: P25,050 at cost; P48,300 at retailNet additional markups – P100,000 Net markdowns – P205,000Sales revenue – P900,000What is the estimated cost of the ending inventory using the average retail? a. 258,265 b. 250,866 c. 368,950 d. 250,886
37.The Blueberry Company values its inventory by using the FIFO retail method.. The following information is available for the year 2020: Cost RetailBeg. invy 809,000 1,400,000Purchases 2,970,000 4,200,000Freight-in 40,000 Net markups 130,000Net markdowns 30,000Sales 4,000,000Sales discount 75,000At what amount would Blueberry Company report as its estimated cost of goods sold under the FIFO retail method? a. 1,134,000 b. 1,700,000 c. 2,680,000 d. 2,800,000
30.Banana Company uses the retail method of inventory valuation. The following information is available:Beginning inventory: P186,196 at cost; P302,250 at retailPurchases: P703,740 at cost; P1,120,000 at retailFreight in: P12,400Purchase discounts: P14,400Purchase returns: P25,050 at cost; P48,300 at retailNet additional markups – P100,000 Net markdowns – P205,000Sales revenue – P900,000What is the estimated cost of the ending inventory using FIFO retail? a. 368,950 b. 258,265 c. 250,886 d. 258,625
15.ABC Store purchased P100,000 from XYZ Supplies on July 1, 20X1. Terms: 5%, 3%, 2/15, n/30. FOB Shipping point, freight prepaid. Shipping costs was P2,000. Insurance for the shipment was P500 and non refundable tax was P1,000. At what amount should ABC recognize as cost of the inventory under the net method? 91,807 93,807 93,650 95,650
8. Banana Company uses the retail method of inventory valuation. The following information is available:Beginning inventory: P186,196 at cost; P302,250 at retailPurchases: P703,740 at cost; P1,120,000 at retailFreight in: P12,400Purchase discounts: P14,400Purchase returns: P25,050 at cost; P48,300 at retailNet additional markups – P100,000 Net markdowns – P205,000Sales revenue – P900,000What is the estimated cost of the ending inventory using FIFO retail? a. 368,950 b. 258,265 c. 250,886 d. 258,625
E7-16 Dollar-Value LIFO A company adopted the LIFO method when its inventory was $1,800. One year later its ending inventory was $2,100, and costs had increased 5% during the year. Required: What is the ending inventory using dollar-value LIFO? Round to the nearest dollar.
20.Pomelo Company has the policy of valuing inventory at the lower of cost and net realizable value using the allowance method. Allowance to Reduce Inventory to NRV account at December 31, 2021 before adjustment is P86,000. Analysis of the net realizable value and costs of their products on December 31, 2021 revealed a valuation at the lower of cost and net realizable value of P1,200,000 applied to the individual products. The total cost of its products on that date is P1,300,000.How much is the loss from decline in NRV that Pomelo Company should report in profit or loss for the year ended December 31, 2021?
14. Sugary Company has the policy of valuing inventory at the lower of cost and net realizable value using the allowance method. Allowance to Reduce Inventory to NRV account at December 31, 2021 before adjustment is P86,000. Data pertaining to its two classes of sugar products at December 31, 2021 follow:Regular refined (500 bags): NRV/bag-1,500 Cost/bag-1,650Muscovado (250 bags): NRV/bag-1,900 Cost/bag-1,750How much inventory should be shown in Sugary Company’s December 31 statement of financial position? a. 1,137,500 b. 1,187,500 c. 1,225,000
PB7-2 (Algo) Evaluating the Income Statement and Income Tax Effects of Lower of Cost or Market/Net Realizable Value [LO 7-4] Mondetta Clothing prepared its annual financial statements dated December 31. The company used the FIFO inventory costing method, but it failed to evaluate the net realizable value of its ending inventory. The preliminary income statement follows: Net Sales $ 428,000 Cost of Goods Sold Beginning Inventory $ 47,000 Purchases 277,000 Goods Available for Sale 324,000 Ending Inventory 80,240 Cost of Goods Sold 243,760 Gross Profit 184,240 Operating Expenses 95,000 Income from Operations 89,240 Income Tax Expense (30%) 26,772 Net Income $ 62,468 Assume that you have been asked to restate the financial statements to incorporate LCM/NRV. You have developed the following data relating to the ending inventory: Required: Restate the income statement to reflect LCM/NRV valuation of the ending inventory. Apply…
E9.3B (L0 1) (LCNRV) Sunshine Company follows the practice of pricing its inventory at LCNRV, on an individual-item basis. Item No. Quantity Cost per Unit Cost to Replace Estimated Selling Price Cost of Completion and Disposal Normal Profi t A 1,200 $8.10 $8.00 $9.00 $0.35 $0.90 B 600 6.00 5.60 6.00 0.45 0.50 C 200 5.50 5.00 7.00 0.40 1.00 D 700 7.25 7.50 8.00 0.50 0.90 E 1,000 2.10 2.00 2.80 0.65 0.20 F 500 4.05 4.00 5.00 0.40 0.75 G 2,000 8.75 8.15 9.00 0.60 0.50 H 300 9.95 9.00 10.50 0.30 1.00 Instructions From the information above, determine the amount of Sunshine Company inventory using the LCNRV method. determine the amount of Sunshine Company inventory using the LCM method.