As of January 1, 2020, Bramble Inc. adopted the retail method of accounting for its merchandise inventory. To prepare the store's financial statements at June 30, 2020, you obtain the following data. Inventory, January 1 Markdowns Markups Markdown cancellations Markup cancellations Purchases Sales revenue Purchase returns Sales returns and allowances Cost $29,100 112,070 2,500 Selling Price $39,600 10,100 9,800 7,000 2,900 155,300 154,500 3,700 7,300

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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As of January 1, 2020, Bramble Inc. adopted the retail method of accounting for its merchandise inventory.
To prepare the store's financial statements at June 30, 2020, you obtain the following data.
Inventory, January 1
Markdowns
Markups
Markdown cancellations
Markup cancellations
Purchases
Sales revenue
Purchase returns
Sales returns and allowances
Cost
$29,100
112,070
2,500
Selling Price
$39,600
10,100
9,800
7,000
2,900
155,300
154,500
3,700
7,300
Transcribed Image Text:As of January 1, 2020, Bramble Inc. adopted the retail method of accounting for its merchandise inventory. To prepare the store's financial statements at June 30, 2020, you obtain the following data. Inventory, January 1 Markdowns Markups Markdown cancellations Markup cancellations Purchases Sales revenue Purchase returns Sales returns and allowances Cost $29,100 112,070 2,500 Selling Price $39,600 10,100 9,800 7,000 2,900 155,300 154,500 3,700 7,300
Your answer is incorrect.
Without prejudice to your solution to part (a), assume that you computed the June 30, 2020, inventory to be $61,560 at retail and
the ratio of cost to retail to be 73%. The general price level has increased from 100 at January 1, 2020, to 108 at June 30, 2020.
Compute the June 30, 2020, inventory at the June 30 price level under the dollar-value LIFO retail method. (Round ratios for
computational purposes to 2 decimal places, e.g. 78% and final answer to O decimal places, e.g. 28,987.)
Ending inventory at dollar-value LIFO cost $
Transcribed Image Text:Your answer is incorrect. Without prejudice to your solution to part (a), assume that you computed the June 30, 2020, inventory to be $61,560 at retail and the ratio of cost to retail to be 73%. The general price level has increased from 100 at January 1, 2020, to 108 at June 30, 2020. Compute the June 30, 2020, inventory at the June 30 price level under the dollar-value LIFO retail method. (Round ratios for computational purposes to 2 decimal places, e.g. 78% and final answer to O decimal places, e.g. 28,987.) Ending inventory at dollar-value LIFO cost $
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