Answered: On January 1, 2021, the Brunswick Hat…

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, 2021, the Brunswick Hat Company adopted the dollar-value LIFO retail method. The following data are available for 2021:

	Cost	Retail
Beginning inventory	$	71,280	$	132,000
Net purchases		112,500		255,000
Net markups				6,000
Net markdowns				11,000
Net sales				232,000
Retail price index, 12/31/2021				1.04

Required:
Calculate the estimated ending inventory and cost of goods sold for 2021 using the information provided. (Do not round intermediate calculations.)

According to my HW the answer is NOT 76,877 for the Ending Inventory at Cost which is what I keep calculating.
Ending inventory at retail $150,000 x 1.04 = 144230.7692
144230.7692-132,000 = 12,230.76923
132,000 x 1 x .54 = 71,280
12230.76923 x 1.04 x .44 = 5,596.797149
5,596.797149 + 71280 = 76,876.79715 = 76,877

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