Wildhorse 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 $38,000 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. Cost Retail Inventory, Jan. 1, 2020 $38,000 $61,200 Markdowns (net) 12,700 Markups (net) 21,600 Purchases (net) 133,300 177,600 Sales (net) 169,900 Ending inventory using conventional retail method $ Ending inventory LIFO retail method $
Wildhorse 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 $38,000 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.
Cost Retail
Inventory, Jan. 1, 2020 $38,000 $61,200
Markdowns (net) 12,700
Markups (net) 21,600
Purchases (net) 133,300 177,600
Sales (net) 169,900
Ending inventory using conventional retail method
$
Ending inventory LIFO retail method
$
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