On January 1, 2018, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2018 and 2019 are as follows: 2018 2019 Cost Retail Cost Retail Beginning inventory $ 42,000 $ 60,000 Net purchases 94,500 118,000 $ 108,108 $ 133,200 Freight-in 3,000 3,500 Net markups 15,000 10,000 Net markdowns 3,000 3,200 Net sales to customers 117,360 119,890 Sales to employees (net of 10% discount) 3,600 6,300 Price Index: January 1, 2018 1.00 December 31, 2018 1.04 December 31, 2019 1.09 Required:Estimate the 2018 and 2019 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method. I keep getting the following and do not understand why is marked wrong Cost Retail Cost Retail Beginning Inv. 42000 60000 70% 43578 64504 Purchases 94500 118000 108,108 133,200 Freight in 3000 0 3,500 0 0 0 0 0 Net Markup 0 15000 0 10,000 Net Markdown 0 -3000 0 -3200 0 0 0 0 excluding beg. 97500 130000 75% 111,608 140,000 80% goods available 139500 190000 155,186 204,504 0 0 0 0 Net Sales -125496 -126190 Ending inventory 43578 64504 52145.08 78,314

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 14RE: On January 1 of Year 1, Dorso Company adopted the dollar-value LIFO method of inventory costing....

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On January 1, 2018, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2018 and 2019 are as follows:

	2018	2019
	Cost	Retail	Cost	Retail
Beginning inventory	$	42,000		$	60,000
Net purchases		94,500			118,000	$	108,108	$	133,200
Freight-in		3,000					3,500
Net markups					15,000				10,000
Net markdowns					3,000				3,200
Net sales to customers					117,360				119,890
Sales to employees (net of 10% discount)					3,600				6,300
Price Index:
January 1, 2018									1.00
December 31, 2018									1.04
December 31, 2019									1.09

Required:
Estimate the 2018 and 2019 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method.

I keep getting the following and do not understand why is marked wrong

	Cost	Retail		Cost	Retail
Beginning Inv.	42000	60000	70%	43578	64504
Purchases	94500	118000		108,108	133,200
Freight in	3000	0		3,500	0
	0	0		0	0
Net Markup	0	15000		0	10,000
Net Markdown	0	-3000		0	-3200
	0	0		0	0
excluding beg.	97500	130000	75%	111,608	140,000	80%
goods available	139500	190000		155,186	204,504

	0	0		0	0
Net Sales		-125496			-126190
Ending inventory	43578	64504		52145.08	78,314

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