On March 1, Year 1, Lux Wear Inc. had beginning inventory and purchases, at cost, of $

Question:

On March 1, Year 1, Lux Wear Inc. had beginning inventory and purchases, at cost, of $ 50,000 and $ 20,000, respectively. The beginning inventory and purchases had a retail value of $ 75,000 and $ 30,000, respectively. The company had sales of $ 60,000, as well as markups of $ 6,000 and markdowns of $ 10,000. What would Lux Wear report as the lower of cost or market for its on March 31, Year 1 using the conventional (LCM) retail method? (Round the cost- to- retail ratio to two decimal places.)
a. $ 25,830
b. $ 27,470
c. $ 28,290
d. $ 41,000 Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...