Chapter 8 Perform (ASAC LO 5 and BSAC LO 2)Kingbird Company began operations late in 2024 and adopted the conventional retail inventory method.Because there was no beginning inventory for 2024 and no markdowns during 2024, the ending inventoryfor 2024 was $13,708 under both the conventional retail method and the LIFO retail method. At the end of2025, management wants to compare the results of applying the conventional and LIFO retail methods.There was no change in the price level during 2025. The following data are available for computations.CostInventory, January 1, 2025Sales revenueNet markups muNet markdowns moPurchasesFreight-inEstimated theft(b) The LIFO retail method.Ending inventory at costEnding inventory at retailCost$$13,708$63,9005,888RetailCompute the cost of the 2025 ending inventory under both:(a) The conventional retail method.$20,20077,000 mu9,900 mD1,800 ex BegEnding inventory using the conventional retail method $87,5002,2002733640800Pure63900 +w/beg 77688Sales (Net)63,90020,200875009900(1800)→95600115,80038800-25000End Inve 40,8006390095600 ==67%X40,80067%←27336

Name: Chapter 8 Perform (ASAC LO 5 and BSAC LO 2)Kingbird Company began ope
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Chapter 8 Perform (ASAC LO 5 and BSAC LO 2)Kingbird Company began operations late in 2024 and adopted the conventional retail inventory method.Because there was no beginning inventory for 2024 and no markdowns during 2024, the ending inventoryfor 20

The conventional retail inventory method is used to record the relationship between the cost price…

Answered: Compute the cost of the 2025 ending…

Business

Accounting

Compute the cost of the 2025 ending inventory under both: (a) The conventional retail method. Ending inventory using the conventional retail method $ 63900 95600 = 38800

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Sh21
Nm. 152.
D
On December 31, 2023, Jen & Mink Clothing (J&M) performed the inventory count and determined the year-end ending inventory value to be $77500, it is now January 8, 2024, and you have been asked to double-check the year-end inventory listing. J&M uses a perpetual inventory system Note: Only relevant items are shown on the inventory listing. # 1 2 Jen & Mink Clothing Inventory Listing December 31, 2023 Inventory Number Inventory Description Quantity (units) Blue jackets. Black pants 7649 10824 104 308 Unit Cost ($) Total Value ($) 24 2,496 5,852 19 Total Inventory $77,500 The following situations have been brought to your attention: a. On January 3, 2024, J&M received a shipment of 104 blue jackets, for $2,496 (Item #7649). The inventory was purchased December 23, 2023, FOB destination from Global Threads. This inventory was included in J&M's inventory count and inventory listing. b. On December 29, 2023, J&M sold scarves (Item # 5566) to a customer with a sale price of $740 and cost of…
As of January 1, 2020, Ivanhoe 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 $28,700 110,310 3,000 Selling Price $45,300 10,100 10,000 7,000 3,400 155,400 156,900 4,300 7,800
Sunland Corporation had the following items in inventory as at December 31, 2023: Item No. A1 84 C2 D3 (a) Quantity 4 120 110 190 120 Inventory 1 Unit Cost $3.20 Inventory 1.70 8.50 7.50 Your answer is partially correct. Assume that Sunland uses a periodic inventory system, and that none of the inventory items can be grouped together for accounti purposes. The opening inventory on January 1, 2023, was $3,200 in total. Account Titles and Explanation Allowance to Reduce Inventory to NRV NRV $3.80 1.10 Prepare the year-end adjusting entries required to adjust to the lower of cost or net realizable value using the direct method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List all debit entries before credit entries.) 10.30 7.10 (To transfer out beginning inventory balance) Allowance to Reduce Inventory to NRV (To record ending inventory at…
Q: If the cost of an item of inventory is $52.00 and the current replacement cost is $68.00, what is the amount included in inventory according to the lower of cost or market? a. $120.00 b. $52.00 c. $16.00 d. $68.00
es Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2024 are as follows: Beginning inventory Purchases Freight-in Purchase returns. Net markups Net markdowns Normal spoilage ormal spoilage Sales Sales returns Cost $ 97,000 363,000 9,700 7,700 Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold 5,546 Retail $ 187,000 587,000 11,700 16,700 12,700 3,700 8,700 547,000 10,700 The company records sales net of employee discounts. Employee discounts for 2024 totaled $4,700. 2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. Note: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount. Conventional application
please assist
Determine the ending inventory amount by applying the lower of cost or market value to a. Each inventory item of inventoryb. Total inventory The following data refer to Froning Company’s ending inventoryItem Code, Quantity, Unit Cost, Unit MarketLXC 60 $45 $48KMT 210 $38 $34MOR 300 $22 $20NES 100 $27 $32