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Compute the cost of the ending inventory under the fifo

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Retail Inventory Method

EKC Company uses the retail inventory method. The following information for 2016 is available:

  Cost Retail     Cost Retail
Inventory, January 1 $100,000 $180,000   Markup cancellations - $ 12,000
Purchases (gross price) 320,000 600,000   Markdowns - 15,000
Purchases discounts taken 6,000 -   Markdown cancellations - 4,000
Freight-in 16,000 -   Net Sales - 580,000
Additional markups - 60,000        

1. Compute the cost of the ending inventory under the FIFO method. Round the cost-to-retail ratio to three decimal places and the final answers to the nearest dollar.

2. Compute the cost of the ending inventory under the average cost method. Round the cost-to-retail ratio to three decimal places and the final answers to the nearest dollar.

3. Compute the cost of the ending inventory under the LIFO method. Round the cost-to-retail ratio to three decimal places and the final answers to the nearest dollar

4. Compute the cost of the ending inventory under the lower of cost or market method (based on average cost). Round the cost-to-retail ratio to three decimal places and the final answers to the nearest dollar.

Reference no: EM131788113

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