Lithowanderer Company used the retail method to estimate inventory. Data relating to the inventory computation on December 31, 2020 are as follows: Cost 720,000 Retail Inventory, January 1 Purchases 1,000,000 4,080,000 6,300,000 Net markups Sales Estimated normal shoplifting losses Net markdowns 140% of net markdowns 6,820,000 80,000 500,000 Requirement: a. What is the estimated inventory on December 31, 2020 under the average cost approach? b. What is the estimated inventory on December 31, 2020 under the conservative cost approach?

Lithowanderer Company used the retail method to estimate inventory. Data relating to the inventory computation on December 31, 2020 are as follows: Cost 720,000 Retail Inventory, January 1 Purchases 1,000,000 4,080,000 6,300,000 Net markups Sales Estimated normal shoplifting losses Net markdowns 140% of net markdowns 6,820,000 80,000 500,000 Requirement: a. What is the estimated inventory on December 31, 2020 under the average cost approach? b. What is the estimated inventory on December 31, 2020 under the conservative cost approach?

Name: 2. Lithowanderer Company used the retail method to estimate inventory
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Description: 2. Lithowanderer Company used the retail method to estimate inventory. Data relating to theinventory computation on December 31, 2020 are as follows:Inventory, January 1PurchasesCost720,0004,080,000Retail1,000,0006,300,000Net markupsSalesEstimated n

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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