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 $34,020 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. Inventory, Jan 1, 2025 Markdowns (net) Markups (net) Purchases (net) Sales (net) (a) Cost $34,020 (b) 117,820 Retail $54,000 11,700 19,800 160,200 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, es 78.72% and final answers to O decimal places, e.g. 28,987) 150,300 Ending inventory using conventional retail method Ending inventory LIFO retail method $ $ 105119 104581

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 $34,020 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. Inventory, Jan 1, 2025 Markdowns (net) Markups (net) Purchases (net) Sales (net) (a) Cost $34,020 (b) 117,820 Retail $54,000 11,700 19,800 160,200 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, es 78.72% and final answers to O decimal places, e.g. 28,987) 150,300 Ending inventory using conventional retail method Ending inventory LIFO retail method $ $ 105119 104581

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 3P: Koopman Company began operations on January 1, 2018, and uses they FIFO inventory method for...

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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
$34,020 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.
Inventory, Jan. 1, 2025
Markdowns (net)
Markups (net)
Purchases (net)
Sales (net)
(a)
Cost
$34,020
(b)
117,820
Retail
$54,000
11,700
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, eg. 78.72% and final answers to O decimal places, e.g. 28,987.)
19,800
160,200
150.300
Ending inventory using conventional retail method
Ending inventory LIFO retail method
$
$
105119
104581

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