Question

The following data are available for the month of November 2015: COST RETAIL Inventory November 1 $12,000 $20,000 Purchases $15,000 $22,000 Freight In $1,000 Net Markup $3,000 Net Markdown $1,000 Normal Breakage $500 Net Sales $10,000 The company uses the retail method of computing ending inventory. Compute the estimated inventory at November 30, 2015 assuming: LIFO Retail Method

Answer 1

ESTIMATED INVENTORY AT 30 NOVEMBER 2015 = 33,500

Step-by-step explanation:

LIFO RETAIL METHOD

COST RETAIL

$ $

Beginning Inventory 12,000 20,000

Purchases 15,000 22,000

Freight In 1,000

Net Markup 3,000

Net Markdown (1,000)

Goods Available for Sale 28,000 44,000

Normal Breakage (500)

Net Sales (10,000)

Ending Inventory at Retail at 30 November 2015 33,500