Carla Company began operations on January 1, 2024, adopting the conventional retall inventory system. None of the company's merchandise was marked down in 2024 and, because there was no beginning inventory, its ending inventory for 2024 of $37.440would have been the same under either the conventional retall system or the LIFO retall system. On December 31, 2025, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2025, Inventory would appear under both systems. All pertinent data regarding purchases, sales, markups, and markdowns are shown below. There has been no change in the price level. Inventory, Jan 1, 2025 Markdowns (net) Markups (net) Purchases (net) Sales (net) Cost $37,440 136,160 Retail $62,400 13,520 22,880 185,120 173,680 Determine the cost of the 2025 ending Inventory under both (a) the conventional retail method and (b) the LIFO retail method. (Round ratios for computational purposes to 2 decimal place, e.gs. 78.72% and final answers to 0 decimal places, e.g. 28,987.) (a) Ending inventory using conventional retail method $ (b) Ending inventory LIFO retail method

Carla Company began operations on January 1, 2024, adopting the conventional retall inventory system. None of the company's merchandise was marked down in 2024 and, because there was no beginning inventory, its ending inventory for 2024 of $37.440would have been the same under either the conventional retall system or the LIFO retall system. On December 31, 2025, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2025, Inventory would appear under both systems. All pertinent data regarding purchases, sales, markups, and markdowns are shown below. There has been no change in the price level. Inventory, Jan 1, 2025 Markdowns (net) Markups (net) Purchases (net) Sales (net) Cost $37,440 136,160 Retail $62,400 13,520 22,880 185,120 173,680 Determine the cost of the 2025 ending Inventory under both (a) the conventional retail method and (b) the LIFO retail method. (Round ratios for computational purposes to 2 decimal place, e.gs. 78.72% and final answers to 0 decimal places, e.g. 28,987.) (a) Ending inventory using conventional retail method $ (b) Ending inventory LIFO retail method

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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The Bockner Company shipped merchandise to Laetner Corporation on December 28, 2018. Laetner receivedthe shipment on January 3, 2019. December 31 is the fiscal year-end for both companies. The merchandisewas shipped f.o.b. shipping point. Explain the difference in the accounting treatment of the merchandise if theshipment had instead been designated f.o.b. destination.
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Current Attempt in Progress Cullumber Company began operations on January 1, 2024, adopting the conventional retail inventory system. None of the company's merchandise was marked down in 2024 and, because there was no beginning inventory, its ending inventory for 2024 of $31,248 would have been the same under either the conventional retail system or the LIFO retail system. On December 31, 2025, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2025, inventory would appear under both systems. All pertinent data regarding purchases, sales, markups, and markdowns are shown below. There has been no change in the price level. Cost Retail Inventory, Jan. 1, 2025 $31,248 $50,400 Markdowns (net) 10,920 Markups (net) 18,480 Purchases (net) 109,960 149,520 Sales (net) 140,280 Determine the cost of the 2025 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method. (Round ratios for computational purposes to…
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