Lauras Homemade cannot decide which inventory method to use to determine its ending inventory The accounting records for the current year contain the following information Cost Retail Purchases $67,800 $99,500 Beginning inventory 17,200 25,500 Sales 98,000 Net markups 6,500 Net markdowns 3,000 Compute the cost of inventory under the following cost flow assumptions 1) LIFO 2) Average Cost

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Question: Lauras Homemade cannot decide which inventory method to use to determine its ending inventory. The accounting records for the current year contain the following information:

Lauras Homemade cannot decide which inventory method to use to determine its ending inventory. The accounting records for the current year contain the following information:

	Cost	Retail
Purchases	$67,800	$99,500
Beginning inventory	17,200	25,500
Sales		98,000
Net markups		6,500
Net markdowns		3,000

Compute the cost of inventory under the following cost flow assumptions. 1) LIFO 2) Average Cost

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