Leonard Company began operations late in 2019 and adopted the conventional retail inventory method. Because there was no beginning inventory for 2019 and no markdowns during 2019, the ending inventory for 2019 was $14,000 under both the conventional retail method and the LIFO retail method. At the end of 2020, management wants to compare the results of applying the conventional and LIFO retail methods. There was no change in the price level during 2020. The following data are available for computations.

Instructions

Compute the cost of the 2020 ending inventory under both

(a) The conventional retail method

(b) The LIFO retail method.

Transcribed Image Text:

Cost Retail $14,000 $20,000 Inventory, January 1, 2020 Sales revenue 80,000 Net markups 9,000 Net markdowns 1,600 Purchases 58,800 81,000 Freight-in 7,500 Estimated theft 2,000