Riverbed Company began operations on January 1, 2024, adopting the conventional retail inventory system. None of the company's nerchandise was marked down in 2024 and, because there was no beginning inventory, its ending inventory for 2024 of $43,092 would have been the same under either the conventional retail system or the LIFO retail system. On December 31, 2025, the store management considers adopting the LIFO retail system and desires to know how the December 31 2025, inventory would appear under both systems. All pertinent data regarding purchases, sales, markups, and markdowns are shown below. There has been no change in the price level. Inventory, Jan. 1, 2025 Markdowns (net) Markups (net) Purchases (net) Sales (net) (a) Cost (b) $43,092 149,260 Retail $68,400 14,820 Determine the cost of the 2025 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method. (Round atios for computational purposes to 2 decimal place, e.g. 78.72% and final answers to O decimal places, e.g. 28,987.) 25,080 202,920 190,380 Ending inventory LIFO retail method Ending inventory using conventional retail method $ $
Riverbed Company began operations on January 1, 2024, adopting the conventional retail inventory system. None of the company's nerchandise was marked down in 2024 and, because there was no beginning inventory, its ending inventory for 2024 of $43,092 would have been the same under either the conventional retail system or the LIFO retail system. On December 31, 2025, the store management considers adopting the LIFO retail system and desires to know how the December 31 2025, inventory would appear under both systems. All pertinent data regarding purchases, sales, markups, and markdowns are shown below. There has been no change in the price level. Inventory, Jan. 1, 2025 Markdowns (net) Markups (net) Purchases (net) Sales (net) (a) Cost (b) $43,092 149,260 Retail $68,400 14,820 Determine the cost of the 2025 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method. (Round atios for computational purposes to 2 decimal place, e.g. 78.72% and final answers to O decimal places, e.g. 28,987.) 25,080 202,920 190,380 Ending inventory LIFO retail method Ending inventory using conventional retail method $ $
Intermediate Accounting: Reporting And Analysis
3rd Edition
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Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 13P: Webster Company adopted do liar-value LIFO on January 1, 2019. Webster produces three products: X,...
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![Riverbed Company began operations on January 1, 2024, adopting the conventional retail inventory system. None of the company's
merchandise was marked down in 2024 and, because there was no beginning inventory, its ending inventory for 2024 of
$43,092 would have been the same under either the conventional retail system or the LIFO retail system.
On December 31, 2025, the store management considers adopting the LIFO retail system and desires to know how the December 31,
2025, inventory would appear under both systems. All pertinent data regarding purchases, sales, markups, and markdowns are shown
below. There has been no change in the price level.
Inventory, Jan. 1, 2025
Markdowns (net)
Markups (net)
Purchases (net)
Sales (net)
Cost
$43,092
(b)
149,260
Retail
$68,400
14,820
25,080
202,920
190,380
Determine the cost of the 2025 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method. (Round
ratios for computational purposes to 2 decimal place, e.g. 78.72% and final answers to O decimal places, e.g. 28,987.)
Ending inventory LIFO retail method
(a) Ending inventory using conventional retail method
$
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F40438444-7af0-44b1-b2dc-62a5d8dc6161%2F124a8f21-b72e-49b0-b42d-24e2b926eafe%2Fhb4tzcp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Riverbed Company began operations on January 1, 2024, adopting the conventional retail inventory system. None of the company's
merchandise was marked down in 2024 and, because there was no beginning inventory, its ending inventory for 2024 of
$43,092 would have been the same under either the conventional retail system or the LIFO retail system.
On December 31, 2025, the store management considers adopting the LIFO retail system and desires to know how the December 31,
2025, inventory would appear under both systems. All pertinent data regarding purchases, sales, markups, and markdowns are shown
below. There has been no change in the price level.
Inventory, Jan. 1, 2025
Markdowns (net)
Markups (net)
Purchases (net)
Sales (net)
Cost
$43,092
(b)
149,260
Retail
$68,400
14,820
25,080
202,920
190,380
Determine the cost of the 2025 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method. (Round
ratios for computational purposes to 2 decimal place, e.g. 78.72% and final answers to O decimal places, e.g. 28,987.)
Ending inventory LIFO retail method
(a) Ending inventory using conventional retail method
$
$
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