• 100% Satisfaction Guarantee

Category: Homework
Satisfied Customers: 3040
Experience:  MIT Graduate (Math, Programming, Science, and Music)
3546829
Scott is online now

# Problem Conventional and LIFO Retail Method.* *This topic

### Customer Question

Problem — Conventional and LIFO Retail Method.**This topic is dealt with in more detail in the Appendix of chapter 9.Memorial Book Store uses the conventional retail method.
Instructions
Given the following data, prepare a neat, labeled schedule showing the computation of the cost of inventory on hand at 12/31/04.

Cost             Retail
Inventory 1/1/04 \$ 36,100     \$ 50,000
Purchases     346,400                      600,000
Purchases Returns     9,000               20,000
Purchase Discounts     7,000
Sales (Gross)                             625,000
Sales Returns                              20,000
Employee Discounts                       5,000
Freight-in     23,500
Freight-out     50,000
Loss from Breakage                       2,500
Markups                                       38,000
Markup Cancellations                        18,000
Markdowns                                13,500
Markdown Cancellations                        8,500

B.     Memorial Book Store has decided to switch to the LIFO retail method for the period beginning 1/1/05.
Instructions
Prepare a schedule showing the computation of the 12/31/05 inventory under the LIFO retail method adjusted for price level changes (i.e., dollar-value LIFO Retail.) Without prejudice to your answer in requirement A above, assume that the 12/31/04 inventory computed under the LIFO Retail method was \$50,000 and \$33,500 at retail and cost, respectively, for purposes of this requirement. Data for 2005 follows:
Cost                         Retail
Purchases (net)     \$375,000     \$495,000
Sales (net)                  460,000
Markups (net)                  20,000
Markdowns (net)                  15,000
2004 Price Index     100
2005 Price Index     120

Submitted: 5 years ago.
Category: Homework
Expert:  Manal Elkhoshkhany replied 5 years ago.

Hello

The problem is not complete. Please post the full question. Is this from Managerial Accounting 13th edition? If yes, what is the problem number please?

Customer: replied 5 years ago.
hello,
This a question for my homework. I am taking Intermediate Accounting 13th edition. I copy/paste the text as it was sent by my teacher:

Problem — Conventional and LIFO Retail Method.*

*This topic is dealt with in more detail in the Appendix of chapter 9.

Memorial Book Store uses the conventional retail method.

Instructions
Given the following data, prepare a neat, labeled schedule showing the computation of the cost of inventory on hand at 12/31/04.

Cost Retail
Inventory 1/1/04 \$ 36,100 \$ 50,000
Purchases 346,400 600,000
Purchases Returns 9,000 20,000
Purchase Discounts 7,000
Sales (Gross) 625,000
Sales Returns 20,000
Employee Discounts 5,000
Freight-in 23,500
Freight-out 50,000
Loss from Breakage 2,500
Markups 38,000
Markup Cancellations 18,000
Markdowns 13,500
Markdown Cancellations 8,500

B. Memorial Book Store has decided to switch to the LIFO retail method for the period beginning 1/1/05.

Instructions
Prepare a schedule showing the computation of the 12/31/05 inventory under the LIFO retail method adjusted for price level changes (i.e., dollar-value LIFO Retail.) Without prejudice to your answer in requirement A above, assume that the 12/31/04 inventory computed under the LIFO Retail method was \$50,000 and \$33,500 at retail and cost, respectively, for purposes of this requirement. Data for 2005 follows:
Cost Retail
Purchases (net) \$375,000 \$495,000
Sales (net) 460,000
Markups (net) 20,000
Markdowns (net) 15,000
2004 Price Index 100
2005 Price Index 120

Thank you for help

Customer: replied 5 years ago.
Relist: Other
Do not need answer any more
Expert:  Manal Elkhoshkhany replied 5 years ago.

I do not know how I missed your reply to my first message.

Please forgive me for that and I hope I can help with future posts

All the best

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

### What Customers are Saying:

• Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
< Previous | Next >
• Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
• This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
• Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
• I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
• Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther Woodstock, NY
• Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know. Robin Elkton, Maryland
• He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here. Diane Dallas, TX

• ### LogicPro

#### Satisfied Customers:

4925
Expert in Java C++ C C# VB Javascript Design SQL HTML
< Last | Next >

### LogicPro

#### Satisfied Customers:

4925
Expert in Java C++ C C# VB Javascript Design SQL HTML

### Manal Elkhoshkhany

#### Satisfied Customers:

4538
More than 5000 online tutoring sessions.

### Linda_us

#### Satisfied Customers:

3138
Post Graduate Diploma in Management (MBA)

### Chris M.

#### Satisfied Customers:

2602
Master's Degree, strong math and writing skills, experience in one-on-one tutoring (college English)

### F. Naz

#### Satisfied Customers:

2126
Experience with chartered accountancy

### Bizhelp

#### Satisfied Customers:

1887
Bachelors Degree and CPA with Accounting work experience