Concord Company began operations late in 2019 and adopted the
conventional retail inventory method. Because there was no
beginning inventory for 2019 and no markdowns during 2019, the
ending inventory for 2019 was $15,409 under both the conventional
retail method and the LIFO retail method. At the end of 2020,
management wants to compare the results of applying the
conventional and LIFO retail methods. There was no change in the
price level during 2020. The following data are available for
computations.
Cost |
Retail |
|||
Inventory, January 1, 2020 | $15,409 | $19,900 | ||
Sales revenue | 80,000 | |||
Net markups | 9,000 | |||
Net markdowns | 1,800 | |||
Purchases | 62,900 | 79,500 | ||
Freight-in | 7,327 | |||
Estimated theft | 1,800 |
Compute the cost of the 2020 ending inventory under both:
(a) The conventional retail method.
(Round ratios for computational purposes to 0 decimal
places, e.g. 78% and final answer to 0 decimal places, e.g.
28,987.)
Ending inventory using the conventional retail method |
$19,592 |
(b) The LIFO retail method. (Round
ratios for computational purposes to 0 decimal places, e.g. 78% and
final answers to 0 decimal places, e.g.
28,987.)
Ending inventory at cost The Answer is NOT |
$____________ 19292 or 19783 |
|
Ending inventory at retail |
$24,800 |
Concord Company began operations late in 2019 and adopted the conventional retail inventory method. Because there...
Crane Company began operations late in 2019 and adopted the conventional retail inventory method. Because there was no beginning inventory for 2019 and no markdowns during 2019, the ending inventory for 2019 was $13,202 under both the conventional retail method and the LIFO retail method. At the end of 2020, management wants to compare the results of applying the conventional and LIFO retail methods. There was no change in the price level during 2020. The following data are available for...
Crane Company began operations late in 2019 and adopted the conventional retail inventory method. Because there was no beginning inventory for 2019 and no markdowns during 2019, the ending inventory for 2019 was $13,202 under both the conventional retail method and the LIFO retail method. At the end of 2020, management wants to compare the results of applying the conventional and LIFO retail methods. There was no change in the price level during 2020. The following data are available for...
Exercise 9-25 Kingbird Company began operations late in 2016 and adopted the conventional retail inventory method. Because there was no beginning inventory for 2016 and no markdowns during 2016, the ending inventory for 2016 was $14,110 under both the conventional retail method and the LIFO retail method. At the end of 2017, management wants to compare the results of applying the conventional and LIFO retail methods. There was no change in the price level during 2017. The following data are...
Exercise 9-25 Marigold Company began operations late in 2016 and adopted the conventional retail inventory method. Because there was no beginning inventory for 2016 and no markdowns during 2016, the ending inventory for 2016 was $13,737 under both the conventional retail method and the LIFO retail method. At the end of 2017, management wants to compare the results of applying the conventional and LIFO retail methods. There was no change in the price level during 2017. The following data are...
Exercise 9-25 Marin Company began operations late in 2016 and adopted the conventional retail inventory method. Because there was no beginning inventory for 2016 and no markdowns during 2016, the ending inventory for 2016 was $12,016 under both the conventional retail method and the LIFO retail method. At the end of 2017, management wants to compare the results of applying the conventional and LIFO retail methods. There was no change in the price level during 2017. The following data are...
Cheyenne Company began operations on January 1, 2019, adopting the conventional retail inventory system. None of the Ed Access company's merchandise was marked down in 2019 and, because there was no beginning inventory, its ending inventory for 2019 of $38,500 would have been the same under either the conventional retail system or the LIFO retail system. On December 31, 2020, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2020, inventory would...
Skysong Company began operations on January 1, 2019, adopting the conventional retail inventory system. None of the company's merchandise was marked down in 2019 and, because there was no beginning inventory, its ending inventory for 2019 of $37,500 would have been the same under either the conventional retail system or the LIFO retail system. On December 31, 2020, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2020, inventory would appear under...
Vaughn Company began operations on January 1, 2019, adopting the conventional retail inventory system. None of the company’s merchandise was marked down in 2019 and, because there was no beginning inventory, its ending inventory for 2019 of $38,600 would have been the same under either the conventional retail system or the LIFO retail system. On December 31, 2020, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2020, inventory would appear under...
Vaughn Company began operations on January 1, 2019, adopting the conventional retail inventory system. None of the company’s merchandise was marked down in 2019 and, because there was no beginning inventory, its ending inventory for 2019 of $38,600 would have been the same under either the conventional retail system or the LIFO retail system. On December 31, 2020, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2020, inventory would appear under...
Vaughn Company began operations on January 1, 2019, adopting the conventional retail inventory system. None of the company’s merchandise was marked down in 2019 and, because there was no beginning inventory, its ending inventory for 2019 of $38,600 would have been the same under either the conventional retail system or the LIFO retail system. On December 31, 2020, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2020, inventory would appear under...