Mighty Kingdom Company used the retail inventory method to approximate the ending inventory. Cost 650,000 9,000,000...

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Mighty Kingdom Company used the retail inventory method to approximate the ending inventory. Cost 650,000 9,000,000 14,700,000 200,000 Retail 1,200,000 Beginning Inventory Purchases Freight-in Purchase returns 300,000 150,000 500,000 Purchase Allowances Departmental transfer-in Net markup Net markdown Sales Sales Discounts 200,000 300,000 300,000 1,000,000 9,500,000 100,000 Employee Discounts Estimated normal shoplifting losses Estimated normal shrinkage 500,000 600,000 400,000 Instructions: 1. Compute the estimated cost of ending inventory using the conservative approach 2. Compute the estimated cost of ending inventory using the average cost approach 3. Compute the estimated cost of ending inventory using the FIFO approach Mighty Kingdom Company used the retail inventory method to approximate the ending inventory. Cost 650,000 9,000,000 14,700,000 200,000 Retail 1,200,000 Beginning Inventory Purchases Freight-in Purchase returns 300,000 150,000 500,000 Purchase Allowances Departmental transfer-in Net markup Net markdown Sales Sales Discounts 200,000 300,000 300,000 1,000,000 9,500,000 100,000 Employee Discounts Estimated normal shoplifting losses Estimated normal shrinkage 500,000 600,000 400,000 Instructions: 1. Compute the estimated cost of ending inventory using the conservative approach 2. Compute the estimated cost of ending inventory using the average cost approach 3. Compute the estimated cost of ending inventory using the FIFO approach

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Answer Step 1 Under the FIFO method the Retail ratio cost is calculated by taking the values of p... View the full answer