Retail Inventory Method ?Conventional and LIFO Robinson Company began operations late in 2010 and adopted the conventional retail inventory method. Because there was no beginning inventory for 2010 and no markdowns during 2010, the ending inventory for 2010 was $14,000 under both the conventional retail method and the LIFO retail method. At the end of 2011, management wants to compare the results of applying the conventional and LIFO retail methods. There was no change in the price level during 2011. The following data are available for computations. Compute the cost of the 2011 ending inventory under both

(a) The conventional retail method and

(b) The LIFO retailmethod.

Transcribed Image Text:

Retail Cost Inventory, January 1, 2011 $14,000 $20,000 75,000 9,000 Sales Net markups Net markdowns 55,500 7,500 Purchases 81,000 Freight-in Estimated theft 2,000