Solution-Determine the cost of the ending inventory

Determine the cost of the ending inventory

Reference no: EM131793421

Question - Retail Inventory Method-Conventional and LIFO

Brewster Company began operations on January 1, 2010, adopting the conventional retail inventory system. None of the company's merchandise was marked down in 2010 and, because there was no beginning inventory, its ending inventory for 2010 of $41,100 would have been the same under either the conventional retail system or the LIFO retail system. On December 31, 2011, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2011, 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, 2011 $ 41,100 $ 60,000

Markdowns (net) 13,000

Markups (net) 22,000

Purchases (net) 150,000 191,000

Sales (net) 167,000

Instructions - Determine the cost of the 2011 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method.

Reference no: EM131793421

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Determine the cost of the ending inventory

Reference no: EM131793421

Reference no: EM131793421

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