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Data below for the year ended December 31, 2018, relates to Houdini Inc. Houdini started business...

Data below for the year ended December 31, 2018, relates to Houdini Inc. Houdini started business January 1, 2018, and uses the LIFO retail method to estimate ending inventory.

Cost Retail
Beginning inventory $ 68,000 $ 111,000
Net purchases 332,290 490,000
Net markups 27,000
Net markdowns 47,000
Net sales 438,000

  
Estimated ending inventory at cost is: (Do not round intermediate calculations):

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Cost Retail

Beginning inventory 68000 111,000

Plus: Net purchases 332,290 490,000

Net markups 27,000

Less: Net markdowns (47000)

Goods available for sale (excluding beginning inventory) 332,290 470,000

Goods available for sale (including beginning inventory) 400290 581000

Less: Net sales (438,000)

Estimated ending inventory at retail 143,000

Current period cost-to-retail percentage = 332290 / 470,000 = 70.7%

Retail Cost

Beginning inventory 111,000 68000

Current years layer 32000 X 70.7% 22624

Estimated ending inventory at cost 143,000 90,624

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