Vaughn Company began operations on January 1, 2019, adopting the conventional retail inventory system. None of the company's merchandise was marked down in 2019 and, because there was no beginning inventory, its ending inventory for 2019 of $38,600 would have been the same under either the conventional retail system or the LIFO retail system. On December 31, 2020, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2020, 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, 2020 Markdowns (net) Markups (net) Purchases (net) Sales (net) Cost (b) $38,600 129,700 Retail $59,000 12,900 22,300 175,800 166,000 Determine the cost of the 2020 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 0 decimal places, e.g. 28,987.) I have asked this question twice and the LIFO value has been wrong both times. Help would be appreciated. (a) Ending inventory using conventional retail method Senter a dollar amount rounded to 0 decimal places Ending inventory LIFO retail method. Senter a dollar amount rounded to 0 decimal places
Vaughn Company began operations on January 1, 2019, adopting the conventional retail inventory system. None of the company's merchandise was marked down in 2019 and, because there was no beginning inventory, its ending inventory for 2019 of $38,600 would have been the same under either the conventional retail system or the LIFO retail system. On December 31, 2020, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2020, 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, 2020 Markdowns (net) Markups (net) Purchases (net) Sales (net) Cost (b) $38,600 129,700 Retail $59,000 12,900 22,300 175,800 166,000 Determine the cost of the 2020 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 0 decimal places, e.g. 28,987.) I have asked this question twice and the LIFO value has been wrong both times. Help would be appreciated. (a) Ending inventory using conventional retail method Senter a dollar amount rounded to 0 decimal places Ending inventory LIFO retail method. Senter a dollar amount rounded to 0 decimal places
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...
Related questions
Question
Please do not give solution in image format thanku
Transcribed Image Text:Vaughn Company began operations on January 1, 2019, adopting the conventional retail inventory system. None of the
company's merchandise was marked down in 2019 and, because there was no beginning inventory, its ending inventory
for 2019 of $38,600 would have been the same under either the conventional retail system or the LIFO retail system.
On December 31, 2020, the store management considers adopting the LIFO retail system and desires to know how the
December 31, 2020, 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, 2020
Markdowns (net)
Markups (net)
Purchases (net)
Sales (net)
(a)
Cost
(b)
$38,600
129,700
Retail
$59,000
12,900
22,300
175,800
Determine the cost of the 2020 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 0 decimal places,
e.g. 28,987.) I have asked this question twice and the LIFO value has been wrong both times. Help would be appreciated.
Ending inventory using conventional retail method
Senter a dollar amount rounded to 0 decimal places
166,000
Ending inventory LIFO retail method
Senter a dollar amount rounded to 0 decimal places
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College