Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar. HARMES COMPANY Calculation of ending inventory by retail inventory method Average Cost 2016 Cost 0 Retail Ending inventory at LIFO cost Beginning layer (as stated in data) $29,400 New layer Total 4. Compute the ending inventory by the retail inventory method for th or market (based on average cost). Round the cost-to-retail ratio to th amounts to the nearest whole dollar..
Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar. HARMES COMPANY Calculation of ending inventory by retail inventory method Average Cost 2016 Cost 0 Retail Ending inventory at LIFO cost Beginning layer (as stated in data) $29,400 New layer Total 4. Compute the ending inventory by the retail inventory method for th or market (based on average cost). Round the cost-to-retail ratio to th amounts to the nearest whole dollar..
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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answer all or skip answer in text with all working remember answer all
![2. Compute the ending inventory by the retail inventory method for the following cost flow assumption: Average cost.
Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar.
HARMES COMPANY
Calculation of ending inventory by retail
inventory method
Average Cost 2016
Cost
Retail
00 0 0
0000000
3. Compute the ending inventory by the retail inventory method for the following cost flow assumption: LIFO. Round
the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar.
HARMES COMPANY
Calculation of ending inventory by retail inventory method
LIFO 2016
Ending inventory at LIFO cost
Cost
Retail
0
Ending inventory at LIFO cost
Beginning layer (as stated in data) $29,400
New layer
Total
4. Compute the ending inventory by the retail inventory method for the following cost flow assumption: Lower of cost
or market (based on average cost). Round the cost-to-retail ratio to three decimal places. If necessary, round dollar
amounts to the nearest whole dollar.
HARMES COMPANY
Calculation of ending inventory by retail
inventory method
Lower of Cost or Market (based on average
cost) 2016.
Cost
Retail](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc49b70e-3bee-4d78-855e-9a8fe26fc256%2F2d225290-2727-4bb6-a1ee-c53604a2b5ba%2Fylk7orc_processed.png&w=3840&q=75)
Transcribed Image Text:2. Compute the ending inventory by the retail inventory method for the following cost flow assumption: Average cost.
Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar.
HARMES COMPANY
Calculation of ending inventory by retail
inventory method
Average Cost 2016
Cost
Retail
00 0 0
0000000
3. Compute the ending inventory by the retail inventory method for the following cost flow assumption: LIFO. Round
the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar.
HARMES COMPANY
Calculation of ending inventory by retail inventory method
LIFO 2016
Ending inventory at LIFO cost
Cost
Retail
0
Ending inventory at LIFO cost
Beginning layer (as stated in data) $29,400
New layer
Total
4. Compute the ending inventory by the retail inventory method for the following cost flow assumption: Lower of cost
or market (based on average cost). Round the cost-to-retail ratio to three decimal places. If necessary, round dollar
amounts to the nearest whole dollar.
HARMES COMPANY
Calculation of ending inventory by retail
inventory method
Lower of Cost or Market (based on average
cost) 2016.
Cost
Retail
![Retail Inventory Method
Harmes Company is a clothing store that uses the retail inventory method. The following information relates to its
operations during 2016:
Inventory, January 1
Purchases
Markups (net)
Markdowns (net)
Sales
Required:
Cost
Calculation of ending inventory by retail
inventory method
FIFO 2016
Cost
$29,400
67,900
K
1. Compute the ending inventory by the retail inventory method for the following cost flow assumption: FIFO. Round
the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar.
HARMES COMPANY
Retail
Retail
$41,300
103,900
2,200
500
85,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc49b70e-3bee-4d78-855e-9a8fe26fc256%2F2d225290-2727-4bb6-a1ee-c53604a2b5ba%2Ffdkwmy8_processed.png&w=3840&q=75)
Transcribed Image Text:Retail Inventory Method
Harmes Company is a clothing store that uses the retail inventory method. The following information relates to its
operations during 2016:
Inventory, January 1
Purchases
Markups (net)
Markdowns (net)
Sales
Required:
Cost
Calculation of ending inventory by retail
inventory method
FIFO 2016
Cost
$29,400
67,900
K
1. Compute the ending inventory by the retail inventory method for the following cost flow assumption: FIFO. Round
the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar.
HARMES COMPANY
Retail
Retail
$41,300
103,900
2,200
500
85,000
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