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Buffalo Company began operations on January 1, 2016, adopting the conventional retail inventory system. None of the company's merchandise was marked down in 2016 and, because there was no beginning inventory, its ending inventory for 2016 of $38,800 would have been the same under either the conventional retail system or the LIFO retail system. On December 31, 2017, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2017, 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, 2017 Markdowns (net) Markups (net) Purchases (net) Sales (net) (a) Cost (b) $38,800 130,800 Retail $60,000 13,100 Determine the cost of the 2017 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method. Ending inventory using conventional retail method Ending inventory LIFO retail method 22,100 181,300 167,500

Buffalo Company began operations on January 1, 2016, adopting the conventional retail inventory system. None of the company's merchandise was marked down in 2016 and, because there was no beginning inventory, its ending inventory for 2016 of $38,800 would have been the same under either the conventional retail system or the LIFO retail system. On December 31, 2017, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2017, 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, 2017 Markdowns (net) Markups (net) Purchases (net) Sales (net) (a) Cost (b) $38,800 130,800 Retail $60,000 13,100 Determine the cost of the 2017 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method. Ending inventory using conventional retail method Ending inventory LIFO retail method 22,100 181,300 167,500

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 3P: Koopman Company began operations on January 1, 2018, and uses they FIFO inventory method for...
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Buffalo Company began operations on January 1, 2016, adopting the conventional retail inventory system. None of the company's merchandise was marked down in 2016 and, because there was no beginning inventory, its ending inventory for 2016 of $38,800 would have been the same under either the conventional retail system or the LIFO retail system. On December 31, 2017, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2017, 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, 2017 Markdowns (net) Markups (net) Purchases (net) Sales (net) (a) Cost (b) $38,800 130,800 Retail $60,000 Ending inventory LIFO retail method 13,100 Determine the cost of the 2017 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method. 22,100 181,300 167,500 Ending inventory using conventional retail method
Transcribed Image Text:Buffalo Company began operations on January 1, 2016, adopting the conventional retail inventory system. None of the company's merchandise was marked down in 2016 and, because there was no beginning inventory, its ending inventory for 2016 of $38,800 would have been the same under either the conventional retail system or the LIFO retail system. On December 31, 2017, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2017, 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, 2017 Markdowns (net) Markups (net) Purchases (net) Sales (net) (a) Cost (b) $38,800 130,800 Retail $60,000 Ending inventory LIFO retail method 13,100 Determine the cost of the 2017 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method. 22,100 181,300 167,500 Ending inventory using conventional retail method
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