Harvey's Junk Jewelry started business January 1, 2021, and uses the LIFO retail method to estimate...

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Harvey's Junk Jewelry started business January 1, 2021, and uses the LIFO retail method to estimate...

Harvey's Junk Jewelry started business January 1, 2021, and uses the LIFO retail method to estimate ending inventory. Listed below is data accumulated for the year ended December 31, 2021:

	Cost		Retail
Beginning inventory	$	15,000	$	23,000
Purchases		49,000		78,000
Freight-in		2,500
Purchase returns		1,700		2,600
Net markups				2,000
Net markdowns				4,100
Net sales				70,600
Employee discounts				700

The numerator for the current period's cost-to-retail percentage is:

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Answer 1

Answer #1

LIFO retail method

	Cost	Retail
Beginning inventory	$15,000	$23,000
Add: Purchases	$49,000	$78,000
Freight in	$2,500
Less: Purchase returns	($1,700)	($2,600)
Add: Net Markups		$2,000
Less: Net Markdowns		($4,100)
Goods available for sale ( Excluding beginning inventory)	$49,800	$73,300

Answer is numerator for the current periods cost to retail percentage is $49,800.

_____×_____

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Answer 2

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