Harley Co. uses the conventrional retail method to estimate ending inventories. The following data has been summarized for year ended December 31, 2015 CostRetail Inventory , January 1 $ 208,000 $ 280,000 Purchases $ 470,000 $ 610,000 Net Markups $ 15,300 Net Markdowns $ 11,200 Normal Spoilage $ 4,600 Net Sales $ 489,500 Estimate the cost of ending inventory applying the conventional retail method. Assume that sales are recorded net of employee discounts Prepare a schedule to compute Harley's December 31, 2015 inventory under the conventioanl retail method

In conventional retail Inventory method is also called lower of cost or market approach. In this…

Answered: Harley Co. uses the conventrional…

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section20.3: Estimating Inventory

Problem 1OYO

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Harley Co. uses the conventrional retail method to estimate ending inventories. The following data has been summarized for year ended December 31, 2015
	Cost	Retail
Inventory , January 1	$ 208,000	$ 280,000
Purchases	$ 470,000	$ 610,000
Net Markups		$ 15,300
Net Markdowns		$ 11,200
Normal Spoilage		$ 4,600
Net Sales		$ 489,500

Estimate the cost of ending inventory applying the conventional retail method. Assume that sales are recorded net of employee discounts

Prepare a schedule to compute Harley's December 31, 2015 inventory under the conventioanl retail method

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