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Murdock Industries uses a periodic inventory system and the LIFO retail method to estimate its ending...

Murdock Industries uses a periodic inventory system and the LIFO retail method to estimate its ending inventories. The following data has been summarized for December 31, 2018: Cost Retail Inventory, January 1 $ 125,000 $ 174,000 Purchases 360,620 544,500 Net markups 14,700 Net markdowns 8,900 Net sales 531,000 Required: Estimate the LIFO cost of ending inventory. Assume stable retail prices during the period. (Do not round your "Cost-to-retail percentage" and round your final answer to the nearest whole number.)

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Answer #1
Cost Retail
Inventory, January 1 $ 125,000 $ 174,000
Net Purchases 360,620 544,500
Net markups 14,700
Net markdowns (8,900)
Goods available for sale (Excluding BI) 360,620 550,300
Goods available for sale 485,620 724,300
Cost to retail percentage: $360,620 / $550,300 = 65.53%
Net sales (531,000)
Ending Inventory: At retail $193,300
Beginning Inventory $ 125,000 $ 174,000
Current period's layer: 19300 * 65.53% 12,647 19,300
Total $137,647 $193,300
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