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The records of Lohse Stores included the following data:
Inventory, May 1, at retail, $14,500; at cost, $10,440
Purchases during May, at retail, $42,900; at cost, $31,550
Freight-in, $2,000;
purchase discounts, $250
Additional markups, $3,800; markup cancellations, $400; net markdowns, $1,300
Sales during May, $45,500
Required:
(A) Calculate the estimated inventory at May 31 on a LIFO basis.

Respuesta :

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Answer:

$9,360

Explanation:

                                          Cost       Retail      Ratio

Inventory, May 1             $10,440 $14,500 .72

Purchases                           31,550 42,900

Freight-in                          2,000

Purchase discounts         (250)

Net markups                                    3,400

Net markdowns                                (1,300)

Totals excluding

beginning inventory         33,300     45,000 .74

Goods available                 $43,740    59,500

Sales                                                  (46,500)

Inventory, May 31                                $13,000

Estimated inventory,

May 31 ($13,000 × .72) $ 9,360

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