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(b) * Your answer is incorrect. Without prejudice to your solution to part (a), assume that you computed the June 30, 2025, inventory to be $54,000 at retail and the ratio of cost to retail to be 79%. The general price level has increased from 100 at January 1, 2025, to 108 at June 30, 2025. Compute the June 30, 2025, inventory at the June 30 price level under the dollar-value LIFO retail method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.) Ending inventory at dollar-value LIFO cost tA $ 36438

(b) * Your answer is incorrect. Without prejudice to your solution to part (a), assume that you computed the June 30, 2025, inventory to be $54,000 at retail and the ratio of cost to retail to be 79%. The general price level has increased from 100 at January 1, 2025, to 108 at June 30, 2025. Compute the June 30, 2025, inventory at the June 30 price level under the dollar-value LIFO retail method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.) Ending inventory at dollar-value LIFO cost tA $ 36438

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

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Subject

Accounting 

As of January 1, 2025, Flounder Inc. adopted the retail method of accounting for its merchandise inventory. To prepare the store's financial statements at June 30, 2025, you obtain the following data. Inventory, January 1 Markdowns Markups Markdown cancellations Markup cancellations Purchases Sales revenue Purchase returns Sales returns and allowances Cost $32,700 99,228 2,700 Selling Price $41,600 11,400 8,700 6,500 3,400 152,600 153,200 3,700 8,300
Transcribed Image Text:As of January 1, 2025, Flounder Inc. adopted the retail method of accounting for its merchandise inventory. To prepare the store's financial statements at June 30, 2025, you obtain the following data. Inventory, January 1 Markdowns Markups Markdown cancellations Markup cancellations Purchases Sales revenue Purchase returns Sales returns and allowances Cost $32,700 99,228 2,700 Selling Price $41,600 11,400 8,700 6,500 3,400 152,600 153,200 3,700 8,300
(b) * Your answer is incorrect. Without prejudice to your solution to part (a), assume that you computed the June 30, 2025, inventory to be $54,000 at retail and the ratio of cost to retail to be 79%. The general price level has increased from 100 at January 1, 2025, to 108 at June 30, 2025. Compute the June 30, 2025, inventory at the June 30 price level under the dollar-value LIFO retail method. (Round ratios for computational purposes to O decimal places, e.g. 78% and final answer to O decimal places, e.g. 28,987.) Ending inventory at dollar-value LIFO cost $ 36438
Transcribed Image Text:(b) * Your answer is incorrect. Without prejudice to your solution to part (a), assume that you computed the June 30, 2025, inventory to be $54,000 at retail and the ratio of cost to retail to be 79%. The general price level has increased from 100 at January 1, 2025, to 108 at June 30, 2025. Compute the June 30, 2025, inventory at the June 30 price level under the dollar-value LIFO retail method. (Round ratios for computational purposes to O decimal places, e.g. 78% and final answer to O decimal places, e.g. 28,987.) Ending inventory at dollar-value LIFO cost $ 36438
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