Harmes Company is a clothing store that uses the retail inventory method. The following information relates to its operations during the year: Cost Retail Inventory, January 1 $35,000 $70,000 Purchases 140,000 244,614 Markups (net) — 5,000 Markdowns (net) — 4,000 Sales — 180,000 Instructions: 1. Compute the ending inventory by the retail inventory method for the following cost flow assumption: FIFO. Round the cost-to-retail ratio to three decimal places. HARMES COMPANYCalculation of ending inventory by retail inventory methodFIFO Cost Retail $- Select - $- Select - - Select - - Select - - Select - - Select - $fill in the blank 9edac0f9300ffd0_10 fill in the blank 9edac0f9300ffd0_11 Cost-to-retail ratio: fill in the blank 9edac0f9300ffd0_12 - Select - - Select - $- Select - $- Select - - Select - - Select - $- Select - $- Select - 2. Compute the ending inventory by the retail inventory method for the following cost flow assumption: Average cost. Round the cost-to-retail ratio to three decimal places. HARMES COMPANYCalculation of ending inventory by retail inventory methodAverage Cost Cost Retail $- Select - $- Select - - Select - - Select - - Select - - Select - - Select - - Select - $- Select - $- Select - Cost-to-retail ratio fill in the blank 0528b6f44ffef90_16 - Select - - Select - $- Select - $- Select - 3. Compute the ending inventory by the retail inventory method for the following cost flow assumption: LIFO. Round the cost-to-retail ratio to three decimal places. HARMES COMPANYCalculation of ending inventory by retail inventory methodLIFO Cost Retail $- Select - $- Select - Cost-to-retail ratio fill in the blank e72d46086f92fd8_4 - Select - - Select - - Select - $- Select - - Select - - Select - $- Select - $- Select - Cost-to-retail ratio fill in the blank e72d46086f92fd8_17 - Select - - Select - $- Select - $- Select -
Harmes Company is a clothing store that uses the retail inventory method. The following information relates to its operations during the year: Cost Retail Inventory, January 1 $35,000 $70,000 Purchases 140,000 244,614 Markups (net) — 5,000 Markdowns (net) — 4,000 Sales — 180,000 Instructions: 1. Compute the ending inventory by the retail inventory method for the following cost flow assumption: FIFO. Round the cost-to-retail ratio to three decimal places. HARMES COMPANYCalculation of ending inventory by retail inventory methodFIFO Cost Retail $- Select - $- Select - - Select - - Select - - Select - - Select - $fill in the blank 9edac0f9300ffd0_10 fill in the blank 9edac0f9300ffd0_11 Cost-to-retail ratio: fill in the blank 9edac0f9300ffd0_12 - Select - - Select - $- Select - $- Select - - Select - - Select - $- Select - $- Select - 2. Compute the ending inventory by the retail inventory method for the following cost flow assumption: Average cost. Round the cost-to-retail ratio to three decimal places. HARMES COMPANYCalculation of ending inventory by retail inventory methodAverage Cost Cost Retail $- Select - $- Select - - Select - - Select - - Select - - Select - - Select - - Select - $- Select - $- Select - Cost-to-retail ratio fill in the blank 0528b6f44ffef90_16 - Select - - Select - $- Select - $- Select - 3. Compute the ending inventory by the retail inventory method for the following cost flow assumption: LIFO. Round the cost-to-retail ratio to three decimal places. HARMES COMPANYCalculation of ending inventory by retail inventory methodLIFO Cost Retail $- Select - $- Select - Cost-to-retail ratio fill in the blank e72d46086f92fd8_4 - Select - - Select - - Select - $- Select - - Select - - Select - $- Select - $- Select - Cost-to-retail ratio fill in the blank e72d46086f92fd8_17 - Select - - Select - $- Select - $- Select -
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Retail Inventory Method
Harmes Company is a clothing store that uses the retail inventory method. The following information relates to its operations during the year:
| Cost | Retail | |
|---|---|---|
| Inventory, January 1 | $35,000 | $70,000 |
| Purchases | 140,000 | 244,614 |
| Markups (net) | — | 5,000 |
| Markdowns (net) | — | 4,000 |
| Sales | — | 180,000 |
Instructions:
1. Compute the ending inventory by the retail inventory method for the following cost flow assumption: FIFO. Round the cost-to-retail ratio to three decimal places.
| Cost | Retail | ||
|---|---|---|---|
|
|
$- Select - | $- Select - | |
|
|
- Select - | - Select - | |
|
|
- Select - | - Select - | |
| $fill in the blank 9edac0f9300ffd0_10 | fill in the blank 9edac0f9300ffd0_11 | ||
| Cost-to-retail ratio: | fill in the blank 9edac0f9300ffd0_12 | ||
|
|
- Select - | - Select - | |
|
|
$- Select - | $- Select - | |
|
|
- Select - | - Select - | |
|
|
$- Select - | $- Select - | |
2. Compute the ending inventory by the retail inventory method for the following cost flow assumption: Average cost. Round the cost-to-retail ratio to three decimal places.
| Cost | Retail | ||
|---|---|---|---|
|
|
$- Select - | $- Select - | |
|
|
- Select - | - Select - | |
|
|
- Select - | - Select - | |
|
|
- Select - | - Select - | |
|
|
$- Select - | $- Select - | |
| Cost-to-retail ratio | fill in the blank 0528b6f44ffef90_16 | ||
|
|
- Select - | - Select - | |
|
|
$- Select - | $- Select - | |
3. Compute the ending inventory by the retail inventory method for the following cost flow assumption: LIFO. Round the cost-to-retail ratio to three decimal places.
| Cost | Retail | ||
|---|---|---|---|
|
|
$- Select - | $- Select - | |
| Cost-to-retail ratio | fill in the blank e72d46086f92fd8_4 | ||
|
|
- Select - | - Select - | |
|
|
- Select - | $- Select - | |
|
|
- Select - | - Select - | |
|
|
$- Select - | $- Select - | |
| Cost-to-retail ratio | fill in the blank e72d46086f92fd8_17 | ||
|
|
- Select - | - Select - | |
|
|
$- Select - | $- Select - | |
4. Compute the ending inventory by the retail inventory method for the following cost flow assumption: Lower of cost or market (based on average cost). Round the cost-to-retail ratio to three decimal places.
| Cost | Retail | ||
|---|---|---|---|
|
|
$- Select - | $- Select - | |
|
|
- Select - | - Select - | |
|
|
- Select - | - Select - | |
| $fill in the blank fa4433f90067014_10 | $fill in the blank fa4433f90067014_11 | ||
| Cost-to-retail ratio | fill in the blank fa4433f90067014_12 | ||
|
|
- Select - | - Select - | |
|
|
$- Select - | $- Select - | |
|
|
- Select - | - Select - | |
|
|
$- Select - | $- Select - |
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