Kang Ha Neul (KHN) Company uses the FIFO retail method of inventory valuation. The following information is
Question:
Kang Ha Neul (KHN) Company uses the FIFO retail method of inventory valuation. The following information is available for the month of December:
Cost Retail
Beginning Inventory 180,000 175,000
Purchases (net) 291,090 463,900
Additional markups 25,200
Markup cancellations 9,200
Markdowns 38,100
Markdown cancellations 6,900
Sales revenue 480,000
Sales return 16,700
Sales discounts 5,800
1.) What would be the estimated cost of ending inventory, using average cost retail.
2.) What is the cost to retail ratio of KHN Company?
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso