Current Attempt in Progress Nash 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 $46,080 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) Cost $46,080 167,600 Retail $76,800 16,640 28,160 227,840 213,760 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.g. 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
Current Attempt in Progress Nash 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 $46,080 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) Cost $46,080 167,600 Retail $76,800 16,640 28,160 227,840 213,760 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.g. 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Current Attempt in Progress
Nash 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 $46,080 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)
Cost
$46,080
167,600
Retail
$76,800
16,640
28,160
227,840
213,760
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.g. 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.
$
LA
SA
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