Flounder Company began operations on January 1, 2019, adopting the conventional retail inventory system. None of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Flounder 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 $37,700 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 both systems. All pertinent data regarding purchases, sales, markups, and markdowns are shown below. There has been no change in the price level. Cost Retail Inventory, Jan. 1, 2020 $37,700 $60,000 Markdowns (net) 12,800 Markups (net) 22,400 Purchases (net) 128,600 178,200 Sales (net) 166,500 Determine the cost of the 2020 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method. (Round ratios for computational purposes to 2 decimal place, e.g. 78.72% and final answers to O decimal places, e.g. 28,987) (a) Ending inventory using conventional retail method $ Flounder 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 $37,700 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 both systems. All pertinent data regarding purchases, sales, markups, and markdowns are shown below. There has been no change in the price level. Cost Retail Inventory, Jan. 1, 2020 $37,700 $60,000 Markdowns (net) 12,800 Markups (net) 22,400 Purchases (net) 128,600 178,200 Sales (net) 166,500 Determine the cost of the 2020 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method. (Round ratios for computational purposes to 2 decimal place, e.g. 78.72% and final answers to O decimal places, e.g. 28,987) (a) Ending inventory using conventional retail method $
Expert Answer:
Answer rating: 100% (QA)
To determine the ending inventory using the conventional retail method we need to calculate the cost... View the full answer
Posted Date:
Students also viewed these accounting questions
-
Davis Company began operations on January 1, 2013, adopting the conventional retail inventory system. None of its merchandise was marked down in 2013 and because there was no beginning inventory, its...
-
Each table of values gives several points that lie on a line.(a) What is the x-intercept of the line? The y-intercept?(b) Which equation in choices AD corresponds to the given table of values?(c)...
-
Horizon Computers manufactures laptops in Germany, Belgium, and Italy. Because of high tariffs between international trade groups, it is sometimes cheaper to ship partially completed laptops to...
-
The following table presents the number of grams of protein and the number of calories per 100 grams for each of 18 fast-food products. a. Compute the least-squares regression line for predicting...
-
Pratt Corp. started the Year 2 accounting period with total assets of $30,000 cash, $12,000 of liabilities, and $5,000 of retained earnings. During the Year 2 accounting period, the Retained Earnings...
-
(8) An amount of $280,000 owed to the company and written off in 2013 was recovered in April 2014. In April 2014 the company spent $500,000 servicing its fleet of motor vehicles. This amount was not...
-
I need an example of a research question and a survey design using either questionnaires, interviews, self reports, phone surveys, or online surveys ?
-
Evaluate the following statement: The demand for U.S. oranges has increased because the quantity of U.S. oranges demanded in Japan has risen.
-
Many restaurants dont take reservations. You simply arrive and wait your turn. If you arrive at 7:30 in the evening, you have at least an hour wait. Notwithstanding that fact, a few people arrive,...
-
Explain how the government can run budget deficitsthat is, spend more than it receives in tax revenue.
-
Is wavelike motion an example of conservative or diffusive motion?
-
Using the interconnection between sectors of the economy, illustrate the effects of imposing an increase in taxes on the household sector.
Study smarter with the SolutionInn App