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Select your languageSuggested languages for you: Question E9-29 Expert-verified  Found in: Page 482 Book edition 16th Author(s) Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield Pages 1552 pages ISBN 9781118743201 Answers without the blur.Just sign up for free and you're in. Short Answer
(Dollar-Value LIFO Retail) You assemble the following information for Seneca Department Store, which computes its inventory under the dollar-value LIFO method. Cost Retail Inventory on January 1, 2017 $216,000 $300,000 Purchases 364,800 480,000 Increase in price level for year 9% Instructions Compute the cost of the inventory on December 31, 2017, assuming that the inventory at retail is (a) $294,300 and (b) $365,150.
The ending inventory for year 2016-2019 equals $61,250.40, $69,908.40, $59,437.80 and $74,662.80, respectively. See the step by step solution Step by Step SolutionCalculation of cost to retail ratio of beginning inventoryThe cost-to-retail ratio of beginning inventory is calculated as follows: Calculation of ending inventory at base year retail pricesThe cost of ending inventory at base year retail price for 2016 is calculated as follows: Calculation of ending inventory under dollar-value-LIFO retail method in 2016Ending inventory is calculated as follows:
Calculation of ending inventory at base year retail prices for the year 2017The cost of ending inventory at base year retail price for 2017 is calculated as follows: Calculation of ending inventory under dollar-value-LIFO retail method in 2017Ending inventory is calculated as follows:
Calculation of ending inventory at base year retail prices for the year 2018The cost of ending inventory at base year retail price for 2018 is calculated as follows: Calculation of ending inventory under dollar-value-LIFO retail method in 2018Ending inventory is calculated as follows:
Calculation of ending inventory at base year retail prices for the year 2019The cost of ending inventory at base year retail price for 2019 is calculated as follows: Calculation of ending inventory under dollar-value-LIFO retail method in 2019Ending inventory is calculated as follows:
Thus, inventory for year 2016, 2017, 2018, and 2019 equals $61,250.40, $69,908.40, $59,437.80, and $74,662.80, respectively. Most popular questions for Business-studies Textbooks
Kumar Inc. uses a perpetual inventory system. At January 1, 2017, inventory was $214,000,000 at both cost and net realizable value. At December 31, 2017, the inventory was $286,000,000 at cost and $265,000,000 at net realizable value. Prepare the entry under (a) the cost-of-goods-sold method and (b) the loss method. Recommended explanations on Business-studies TextbooksWhat is the dollarThe dollar-value method of valuing LIFO inventories is a method of determining cost by using “base-year” costs expressed in total dollars rather than the quantity and price of specific goods as the unit of measurement. Under this method, the taxpayer groups goods contained in the inventory into a pool(s).
When computing the cost to retail percentage for the average cost retail method included in the denominator are?Under the retail method, the denominator in the computation of cost-to-retail percentage includes purchases, purchase returns, abnormal shortages but it does not include freight-in.
Which of the following is not considered an advantage of LIFO when prices are rising?It is easier to erode LIFO layers using dollar-value LIFO techniques than it is with specific goods pooled LIFO. Which of the following is not considered to be an advantage of LIFO when prices are rising? the inventory will be overstated.
How does LIFO affect cost of goods sold?Under LIFO, each item you sell will increase your Cost of Goods Sold (COGS) by the value of the most recent inventory you purchased. The value of your ending inventory is then calculated based on your oldest inventory. Since most retailers are looking to sell their oldest stock first, the LIFO method is unintuitive.
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Under the dollar-value LIFO retail method to determine if the increase in the value
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