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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education