Tamarisk 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 $46,080 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. Cost Retail Inventory, Jan. 1, 2025 $46,080 $76,800 Markdowns (net) 16,640 Markups (net) 28,160 Purchases (net) 167,600 227,840 Sales (net) 213,760 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 LA $ +A $

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 3P: Koopman Company began operations on January 1, 2018, and uses they FIFO inventory method for...
icon
Related questions
Question
Tamarisk 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
$46,080 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.
Cost
Retail
Inventory, Jan. 1, 2025
$46,080
$76,800
Markdowns (net)
16,640
Markups (net)
28,160
Purchases (net)
167,600
227,840
Sales (net)
213,760
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
LA
$
+A
$
Transcribed Image Text:Tamarisk 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 $46,080 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. Cost Retail Inventory, Jan. 1, 2025 $46,080 $76,800 Markdowns (net) 16,640 Markups (net) 28,160 Purchases (net) 167,600 227,840 Sales (net) 213,760 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 LA $ +A $
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning