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Grouper Company began operations on January 1, 2024, adopting the conventional retail inventory system. None of t the company's merchandise was marked down in 2024 and, because there was no beginning inventory, its ending inventory for 2024 of $34,224 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 $34,224 120,440 eTextbook and Media Retail $55,200 11.960 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.) Save for Later 20,240 163,760 153,640 Ending inventory using conventional retail method (b) Ending inventory LIFO retall method $ Attempts: 0 of 3 used Submit Answer

Grouper Company began operations on January 1, 2024, adopting the conventional retail inventory system. None of t the company's merchandise was marked down in 2024 and, because there was no beginning inventory, its ending inventory for 2024 of $34,224 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 $34,224 120,440 eTextbook and Media Retail $55,200 11.960 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.) Save for Later 20,240 163,760 153,640 Ending inventory using conventional retail method (b) Ending inventory LIFO retall method $ Attempts: 0 of 3 used Submit Answer

FINANCIAL ACCOUNTING
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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Grouper 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 $34,224 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 $34,224 eTextbook and Media 120,440 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.) Save for Later Retail $55,200 11,960 20,240 163,760 153,640 (a) Ending inventory using conventional retail method $ (b) Ending inventory LIFO retail method $ Attempts: 0 of 3 used Submit Answer
Transcribed Image Text:Grouper 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 $34,224 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 $34,224 eTextbook and Media 120,440 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.) Save for Later Retail $55,200 11,960 20,240 163,760 153,640 (a) Ending inventory using conventional retail method $ (b) Ending inventory LIFO retail method $ Attempts: 0 of 3 used Submit Answer
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