Identify false statement(s) about estimating ending inventory using the retail inventory method. 1. Average cost, conventional retail, FIFO and LIFO result in different figures of estimated ending inventory at retail. 2. FIFO and LIFO make distinction between beginning inventory and inventory transactions in the current period, whereas average cost and conventional retail do not make this distinction. 3. LIFO estimated ending inventory may include the beginning inventory and the current period's inventory, whereas FIFO estimated ending inventory includes the current period's inventory only. 4. Average cost, conventional retail, FIFO and LIFO include markdowns in computing cost-to-retail ratio.
Identify false statement(s) about estimating ending inventory using the retail inventory method.
1. Average cost, conventional retail, FIFO and LIFO result in different figures of estimated ending inventory at retail.
2. FIFO and LIFO make distinction between beginning inventory and inventory transactions in the current period, whereas average cost and conventional retail do not make this distinction.
3. LIFO estimated ending inventory may include the beginning inventory and the current period's inventory, whereas FIFO estimated ending inventory includes the current period's inventory only.
4. Average cost, conventional retail, FIFO and LIFO include markdowns in computing cost-to-retail ratio.
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