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:  20182019 CostRetailCostRetailBeginning 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 CostRetail CostRetail Beginning Inv.420006000070%4357864504 Purchases94500118000 108,108133,200 Freight in30000 3,5000  00 00 Net Markup015000 010,000 Net Markdown0-3000 0-3200  00 00 excluding beg.9750013000075%111,608140,00080%goods available139500190000 155,186204,504         00 00 Net Sales  -125496  -126190 Ending inventory4357864504 52145.0878,314

Question
Asked Apr 2, 2019

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  

 

check_circleExpert Solution
Step 1

Ending inventory:

 

Ending inventory is the value of the inventory remaining with the business at the end of the year. It includes all the costs incurred to produce the ending inventory.

 

Cost of goods sold:

 

It is the sum total of the costs that a firm incurred against the goods which are sold during a specific period. It can be calculated by discerning the difference between the goods available for sale and the ending inventory.

Step 2

Presenting the estimated ending inventory and the cost of goods sold for 2018 and 2019 in an Excel sheet:

Results of the formulas used in the Excel sheet are shown in the next step.

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Step 3

Presenting the result of the Excel...

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