SavedHelp Save & Exit SCheck my wOn January 1, 2018, HGC Camera Storetail, and cost indexes for 2018 and 2019 are as followsre adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost an2018Cost Retail2019Cost RetailBeginning inventoryNet purchasesFreight-inNet markupsNet markdownsNet sales to customerssales to employees (net of 10% discount)Price Index:$42,000 60,00094,500 118,000 $108,108 $133,2003,0003,50015,0003,000117,3603,60010,0003,200119,8906,300ncesJanuary 1, 2018December 31, 2018December 31, 20191.001.041.09Required:Estimate the 2018 and 2019 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method. (Do notround other intermediate calculations. Round your cost-to-retail percentage calculations to 2 decimal places and final answers tothe nearest whole dollar.)20182019Estimated ending inventory at retail72,540Estimated ending inventory at costEstimated cost of goods sold< Prev4of 5Next >

Question
Asked Mar 31, 2019

I computed 72,540 but is checked wrong why? 

Saved
Help Save & Exit S
Check my w
On January 1, 2018, HGC Camera Sto
retail, and cost indexes for 2018 and 2019 are as follows
re adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost an
2018
Cost Retail
2019
Cost Retail
Beginning inventory
Net purchases
Freight-in
Net markups
Net markdowns
Net sales to customers
sales to employees (net of 10% discount)
Price Index:
$42,000 60,000
94,500 118,000 $108,108 $133,200
3,000
3,500
15,000
3,000
117,360
3,600
10,000
3,200
119,890
6,300
nces
January 1, 2018
December 31, 2018
December 31, 2019
1.00
1.04
1.09
Required:
Estimate the 2018 and 2019 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method. (Do not
round other intermediate calculations. Round your cost-to-retail percentage calculations to 2 decimal places and final answers to
the nearest whole dollar.)
2018
2019
Estimated ending inventory at retail72,540
Estimated ending inventory at cost
Estimated cost of goods sold
< Prev
4of 5
Next >
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Saved Help Save & Exit S Check my w On January 1, 2018, HGC Camera Sto retail, and cost indexes for 2018 and 2019 are as follows re adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost an 2018 Cost Retail 2019 Cost Retail Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales to customers sales to employees (net of 10% discount) Price Index: $42,000 60,000 94,500 118,000 $108,108 $133,200 3,000 3,500 15,000 3,000 117,360 3,600 10,000 3,200 119,890 6,300 nces January 1, 2018 December 31, 2018 December 31, 2019 1.00 1.04 1.09 Required: Estimate the 2018 and 2019 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method. (Do not round other intermediate calculations. Round your cost-to-retail percentage calculations to 2 decimal places and final answers to the nearest whole dollar.) 2018 2019 Estimated ending inventory at retail72,540 Estimated ending inventory at cost Estimated cost of goods sold < Prev 4of 5 Next >

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Expert Answer

Step 1

"LIFO" stands for last-in, first-out, meaning that the recently purchased inventory items are recorded as sold first. The cost associated with the inventory that was purchased last is the cost expensed first. With LIFO, the cost of inventory reported on the balance sheet represents the cost of the inventory of older purchase.

Step 2

Computation of Ending Inv...

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