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On January 1, 2021, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records...

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On January 1, 2021, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provide

On January 1, 2021, Sanderson Variety Store adopted the dollar-value LIFO retail inventory method. Accounting records provided the following information: 8.33 points Skipped Beginning inventory Net purchases Net markups Net markdowns Net sales Retail price index, end of year Cost Retail $ 47,850 $ 87,000 192,390 365,000 7,000 9,000 342,000 1.04 eBook Print References During 2022, purchases at cost and retail were $239,000 and $478,000, respectively. Net markups, net markdowns, and net sales for the year were $6,000, $7,000, and $375,000, respectively. The retail price index at the end of 2022 was 1.05. Estimate ending inventory in 2022 using the dollar-value LIFO retail method. (Round your intermediate calculations to the nearest whole dollar. Round ratio calculation to the nearest whole percent.) Ending inventory

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Sanderson Variety
For 2021 Cost Retail
Beginning Inventory                        47,850.00                       87,000.00
Plus: Net Purchases                      192,390.00                     365,000.00
         Net Markups                         7,000.00
Less: Net Markdowns                        (9,000.00)
Goods available for sale (excluding Beginning Inventory)                      192,390.00                     363,000.00
Goods available for sale (including Beginning Inventory)                      240,240.00                     450,000.00
Less: Net sales                     342,000.00
Estimated Ending Inventory at current year Retail Prices                     108,000.00
Estimated Ending Inventory at cost (calculated below)                        56,778.00
Estimated Cost of goods sold                      183,462.00
Ending Inventory at Year end Retail Prices Ending Inventory at Base Year Retail Prices Inventory layers at Base Year Retail Prices Inventory layers converted to cost
                                           108,000.00 108,000/1.04= 103,846                       87,000.00 87000*1*55%=      47,850.00
                      16,846.00 16846*1*53%=        8,928.00
Total ending inventory at dollar value retail method     56,778.00
Base layer cost to retail percentage 47,850/87,000= 55%
Current layer cost to retail percentage 192,390/363,000= 53%
Sanderson Variety
For 2022 Cost Retail
Beginning Inventory                        56,778.00                     108,000.00
Plus: Net Purchases                      239,000.00                     478,000.00
         Net Markups                         6,000.00
Less: Net Markdowns                        (7,000.00)
Goods available for sale (excluding Beginning Inventory)                      239,000.00                     477,000.00
Goods available for sale (including Beginning Inventory)                      295,778.00                     585,000.00
Less: Net sales                     375,000.00
Estimated Ending Inventory at current year Retail Prices                     210,000.00
Estimated Ending Inventory at cost (calculated below)                      102,874.00
Estimated Cost of goods sold                      192,904.00
Ending Inventory at Year end Retail Prices Ending Inventory at Base Year Retail Prices Inventory layers at Base Year Retail Prices Inventory layers converted to cost
                                           210,000.00 210,000/1.05= 200,000                     108,000.00 108000*1*52.57%=      56,778.00
                      92,000.00 92000*1*50.10%=      46,096.00
Total ending inventory at dollar value retail method 102,874.00
Base layer cost to retail percentage 56,778/108,000= 52.57%
Current layer cost to retail percentage 239,000/477,000= 50.10%
.

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