EKC Company uses the retail inventory method. The following information for 2016 is available: Required: Compute the

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EKC Company uses the retail inventory method. The following information for 2016 is available:

Required:
Compute the cost of the ending inventors€™ under each of the following cost flow assumptions (round the cost to- retail ratio to 3 decimal places):
1. FIFO
2. Average cost
3. LIFO
4. Lower of cost or market (based on average cost)

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Intermediate Accounting Reporting and Analysis

ISBN: 978-1285453828

2nd edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

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Question Posted: Oct 05, 2015 05:15 AM

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EKC Company uses the retail inventory method. The following information for 2016 is available: Required: Compute the

Question:

Cost Retail Cost Retail $100,000 $180,000 Markup cancellations $12,000 15,000 Inventory, January 1 Purchases igross price Purchases discounts taken Freightin Additional markups 320,000 600,000 Markdowns Markdown cancellations Net Sales 4,000 6,000 16,000 580,000 60,000

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1 2 3 4 Purchases Less Purchases discounts taken Freightin Net additional marku...View the full answer

Intermediate Accounting Reporting and Analysis

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