Hoover Co. uses the retail inventory method. The following information is available for the current year. Cost Retail Beginning inventory $ 78,000 $122,000 Purchases 295,000 415,000 Freight-in 5,000 — Employee discounts — 2,000 Net markups — 15,000 Net markdowns — 20,000 Sales — 390,000 a) If the ending inventory is to be valued at approximately lower-of-average-cost-or-net realizable value, the calculation of the cost ratio should be based on cost of $ Answer and retail of $ Answer respectively. b) The ending inventory at retail should be $ Answer c) The approximate cost of the ending inventory by the conventional retail method is $ Answer
Hoover Co. uses the retail inventory method. The following information is available for the current year.
Cost Retail
Beginning inventory $ 78,000 $122,000
Purchases 295,000 415,000
Freight-in 5,000 —
Employee discounts — 2,000
Net markups — 15,000
Net markdowns — 20,000
Sales — 390,000
a) If the ending inventory is to be valued at approximately lower-of-average-cost-or-net realizable value, the calculation of the cost ratio should be based on cost of $ Answer
b) The ending inventory at retail should be $ Answer
c) The approximate cost of the ending inventory by the conventional retail method is $ Answer
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