Bridgeport Inc. had beginning inventory of $11,970 at cost and $21,000 at retail

Question

Bridgeport Inc. had beginning inventory of $11,970 at cost and $21,000 at retail. Net purchases were $141,384 at cost and $183,200 at retail. Net markups were $9,400, net markdowns were $7,300, and sales revenue was $160,900. Assume the price level increased from 100 at the beginning of the year to 110 at year-end. Compute ending inventory at cost using the dollar-value LIFO retail method. (Round ratios for computational purposes to 1 decimal place, e.g. 78.7% and final answer to 0 decimal places, e.g. 28,987.)

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Explanation / Answer

Cost Retail Beginning Inventory 11970 21000 Purchases 141384 183200 Net Markup 9400 Total 153354 213600 Net markdown -7300 Sales price of Goods available 206300 Less: Sale revenue 160900 Ending Inventory 45400 Cost to retail ratio (153354/213600)*100 71.8 Ending iNventory (45400*71.8%) 32597 ans

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