Sheridan Company began operations late in 2024 and adopted the conventional retail inventory method. Because there...
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Sheridan Company began operations late in 2024 and adopted the conventional retail inventory method. Because there was no beginning inventory for 2024 and no markdowns during 2024, the ending inventory for 2024 was $54,200 under both the conventional retail method and the LIFO retail method. At the end of 2025, management wants to compare the results of applying the conventional and LIFO retail methods. There was no change in the price level during 2025. The following data are available for computations: Cost Retail Inventory, January 1, 2025 $54,200 $76,000 Sales 255,000 Net markups 2,000 Net markdowns 9,100 Purchases 202,000 287,000 Freight-in 13,000 Estimated theft 2,200 (a) Compute the cost of the 2025 ending inventory under the conventional retail method. (Round ratios for computational purposes to 1 decimal place, e.g. 78.7% and final answer to O decimal places, e.g. 28,987.) Ending inventory using the conventional retail method $ Sheridan Company began operations late in 2024 and adopted the conventional retail inventory method. Because there was no beginning inventory for 2024 and no markdowns during 2024, the ending inventory for 2024 was $54,200 under both the conventional retail method and the LIFO retail method. At the end of 2025, management wants to compare the results of applying the conventional and LIFO retail methods. There was no change in the price level during 2025. The following data are available for computations: Cost Retail Inventory, January 1, 2025 $54,200 $76,000 Sales 255,000 Net markups 2,000 Net markdowns 9,100 Purchases 202,000 287,000 Freight-in 13,000 Estimated theft 2,200 (a) Compute the cost of the 2025 ending inventory under the conventional retail method. (Round ratios for computational purposes to 1 decimal place, e.g. 78.7% and final answer to O decimal places, e.g. 28,987.) Ending inventory using the conventional retail method $
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