The blue department store uses the retail inventory method. Information relating to the computation of the inventory at January 31 2015, is shown. 

What should be the ending inventory at estimated cost on January 31st 2015 is the LCM retail method is used?

 

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Inventory at January 1, 2015 Sales Purchases Net markups Net markdowns COST $16,000 135,000 RETAIL $ 40,000 290,000 300,000 20,000 10,000 What should be the ending inventory at estimated cost on January 31, 2015, if the LCM retail method is used? A. $27,000 B. $25,800 C. $25,200 D. $26,500 Inventory at January 1, 2015 Sales Purchases Net markups Net markdowns COST $16,000 135,000 RETAIL $ 40,000 290,000 300,000 20,000 10,000 What should be the ending inventory at estimated cost on January 31, 2015, if the LCM retail method is used? A. $27,000 B. $25,800 C. $25,200 D. $26,500

Answer rating: 100% (QA)

Solution Inventory at January 1 2015 at cost 16000 Inventory at January 1 2015 at retail 40000 Sal... View the full answer