Retail Inventory Method

Turner Corporation uses the retail inventory method. The following information relates to 2016:

	Cost	Retail			Cost	Retail
Inventory, January 1	$ 29,000	$ 45,000		Additional markups		$ 50,000
Purchases (gross price)	140,000	190,000		Markup cancellations		10,000
Purchases discounts taken	3,000			Markdowns		15,000
Purchases returns	5,000	8,000		Markdown cancellations		3,000
Freight-in	20,000			Net Sales		190,000
Employee discounts		3,000

Required:

1. Compute the cost of the ending inventory under each of the following cost flow assumptions: FIFO. Round the cost-to-retail ratio to three decimal places. If required, round to the nearest dollar.

TURNER CORPORATION
Calculation of Ending Inventory by Retail Inventory Method FIFO
For the year 2016
	Cost	Retail
	$	$
	$	$
	$	$
Ending inventory at retail		$
Ending inventory at cost	$

2. Compute the cost of the ending inventory under each of the following cost flow assumptions: Average cost. Round the cost-to-retail ratio to three decimal places. If required, round to the nearest dollar.

TURNER CORPORATION
Calculation of Ending Inventory by Retail Inventory Method Average Cost
For the year 2016
	Cost	Retail
	$	$
	$
Ending inventory at retail		$
Ending inventory at cost	$

3. Compute the cost of the ending inventory under each of the following cost flow assumptions: LIFO. Round the cost-to-retail ratio to three decimal places. If required, round to the nearest dollar.

TURNER CORPORATION
Calculation of Ending Inventory by Retail Inventory Method LIFO
For the year 2016
	Cost	Retail
	$	$
	$	$
	$	$
	$	$
Ending inventory at retail		$
Ending inventory at cost	$

4. Compute the cost of the ending inventory under each of the following cost flow assumptions: Lower of cost or market (based on average cost). Round the cost-to-retail ratio to three decimal places. If required, round to the nearest dollar.

TURNER CORPORATION
Calculation of Ending Inventory by Retail Inventory Method Lower of Cost or Market (based on average cost)
For the year 2016
	Cost	Retail
	$	$
	$	$
Ending inventory at retail		$
Ending inventory at LCM	$