Splish 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 $40,320 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 $40,320 146,640 (b) Retail $67,200 14,560 24,640 199,360 187,040 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.) (a) Ending inventory using conventional retail method $ Ending inventory LIFO retail method $
Splish 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 $40,320 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 $40,320 146,640 (b) Retail $67,200 14,560 24,640 199,360 187,040 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.) (a) Ending inventory using conventional retail method $ Ending inventory LIFO retail method $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Urmilaben
![Splish 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
$40,320 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
$40,320
146,640
Retail
$67,200
14,560
24,640
199,360
187,040
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.)
(a) Ending inventory using conventional retail method $
(b) Ending inventory LIFO retail method
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fab8887f0-a61a-48e3-bdf1-cd8861d2c123%2F51110629-0afe-4a96-be03-1ecea6f20fa4%2F8w70uj2_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Splish 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
$40,320 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
$40,320
146,640
Retail
$67,200
14,560
24,640
199,360
187,040
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.)
(a) Ending inventory using conventional retail method $
(b) Ending inventory LIFO retail method
$
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