Question: Retail Inventory Method and LIFO Retail Presented below are a number of items that may be encountered in computing the cost to retail percentage when

Retail Inventory Method and LIFO Retail Presented below are a number of items that may be encountered in computing the cost to retail percentage when using the conventional retail method or the LIFO retail method.

1. Markdowns.

2. Markdown cancellations stolen.

3. Cost of items transferred in from other

4. Retail value of items transferred in from other

5. Sales discounts.

6. Purchases discounts (purchases recorded gross).

7. Estimated retail value of goods broken or

8. Cost of beginning inventory departments.

9. Retail value of beginning inventory.

10. Cost of purchases departments.

11. Retail value of purchases.

12. Markups.

13. Markup cancellations.

14. Employee discounts (sales recorded net). For each of the items listed above, indicate whether this item would be considered in the cost to retail percentage under

(a) Conventional retail and

(b) LIFO retail.

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