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accy.docxOn January 1, 2016, ABC Company adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2016 and 2017 are as follows:
|
|
2016 |
2017 |
||
|
|
Cost |
Retail |
Cost |
Retail |
|
Beginning inventory |
$28,000 |
$ 40,000 |
|
|
|
Net purchases |
85,000 |
108,000 |
$90,000 |
$114,000 |
|
Freight-in |
2,000 |
|
2,500 |
|
|
Net markups |
|
10,000 |
|
8,000 |
|
Net markdowns |
|
2,000 |
|
2,200 |
|
Net sales to customers |
|
100,000 |
|
104,000 |
|
Price Index: |
|
|
|
|
|
January 1, 2016 |
|
|
|
1.00 |
|
December 31, 2016 |
|
|
|
1.06 |
|
December 31, 2017 |
|
|
|
1.10 |
Required:
Estimate the 2016 and 2017 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method.
