Retail Inventory Method EKC Company uses the retail inventory method. The following information for 2019 is available: Cost Retail Cost Retail Inventory, January 1 $100,000 $180,000 Markup cancellations — $ 12,000 Purchases (gross price) 320,000 600,000 Markdowns — 15,000 Purchases discounts taken 6,000 — Markdown cancellations — 4,000 Freight-in 16,000 — Net Sales — 580,000 Additional markups — 60,000 Compute the cost of the ending inventory under the LIFO method. Round the cost-to-retail ratio to three decimal places and the final answers to the nearest dollar.
Retail Inventory Method EKC Company uses the retail inventory method. The following information for 2019 is available: Cost Retail Cost Retail Inventory, January 1 $100,000 $180,000 Markup cancellations — $ 12,000 Purchases (gross price) 320,000 600,000 Markdowns — 15,000 Purchases discounts taken 6,000 — Markdown cancellations — 4,000 Freight-in 16,000 — Net Sales — 580,000 Additional markups — 60,000 Compute the cost of the ending inventory under the LIFO method. Round the cost-to-retail ratio to three decimal places and the final answers to the nearest dollar.
Chapter1: Financial Statements And Business Decisions
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Retail Inventory Method
EKC Company uses the retail inventory method. The following information for 2019 is available:
| Cost | Retail | Cost | Retail | |||
| Inventory, January 1 | $100,000 | $180,000 | Markup cancellations | — | $ 12,000 | |
| Purchases (gross price) | 320,000 | 600,000 | Markdowns | — | 15,000 | |
| Purchases discounts taken | 6,000 | — | Markdown cancellations | — | 4,000 | |
| Freight-in | 16,000 | — | Net Sales | — | 580,000 | |
| Additional markups | — | 60,000 |
Compute the cost of the ending inventory under the LIFO method. Round the cost-to-retail ratio to three decimal places and the final answers to the nearest dollar.
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1. Compute the cost of the ending inventory under the FIFO method. Round the cost-to-retail ratio to three decimal places and the final answers to the nearest dollar.
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