Beg Inv @ cost $11,160 Net Additional markups $600 Sales $94,056 Purchases @ retail $92,400 Freight-in $840 Beg Inv @ retail $18,000 Purchases @ cost $54,600 Net markdowns $1,144 4. Which retail inventory method excludes markups but includes markdowns in calculating the cost ratio? (LIFO Retail Method, Average Cost Method, LCM Conventional Method or none of these)
Beg Inv @ cost $11,160 Net Additional markups $600 Sales $94,056 Purchases @ retail $92,400 Freight-in $840 Beg Inv @ retail $18,000 Purchases @ cost $54,600 Net markdowns $1,144 4. Which retail inventory method excludes markups but includes markdowns in calculating the cost ratio? (LIFO Retail Method, Average Cost Method, LCM Conventional Method or none of these)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Beg Inv @ cost $11,160
Net Additional markups $600
Sales $94,056
Purchases @ retail $92,400
Freight-in $840
Beg Inv @ retail $18,000
Purchases @ cost $54,600
Net markdowns $1,144
4. Which retail inventory method excludes markups but includes markdowns in calculating the cost ratio? (LIFO Retail Method, Average Cost Method, LCM Conventional Method or none of these)
Thank you
Brenda
Expert Solution
Step 1
Retail inventory method is the method of accounting, which is used to measure the estimate value of store merchandise. And it provides the balance of ending inventory for the store through evaluating the inventory cost in relation to the price of goods.
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