Data below for the year ended December 31, 2018, relates to Houdini Inc. Houdini started business January 1, 2018, and uses the retail method to estimate ending inventory. Cost 66,0 00 Retail Beginning inventory 104, %24 000 Net purchases 280, 000 420, 00 Net markups 20,0 00 40,0 00 Net markdowns 375, 000 Net sales Estimated ending inventory at cost is: $90,720. $91,600. $83,500. None of these answer choices are correct.
Data below for the year ended December 31, 2018, relates to Houdini Inc. Houdini started business January 1, 2018, and uses the retail method to estimate ending inventory. Cost 66,0 00 Retail Beginning inventory 104, %24 000 Net purchases 280, 000 420, 00 Net markups 20,0 00 40,0 00 Net markdowns 375, 000 Net sales Estimated ending inventory at cost is: $90,720. $91,600. $83,500. None of these answer choices are correct.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 6MCQ: Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is...
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![Data below for the year ended December 31, 2018, relates to Houdini Inc. Houdini started business January 1, 2018, and uses the LIFO
retail method to estimate ending inventory.
Cost
Retail
Beginning inventory
66,0
00
104,
24
000
Net purchases
280,
000
420,
000
Net markups
20,0
00
40,0
00
Net markdowns
375,
00
Net sales
Estimated ending inventory at cost is:
O $90,720.
$91,600.
O $83,500.
None of these answer choices are correct.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F61ec2775-a974-4cb0-a201-cfc5a52ae7e5%2Fce5b99ac-9a5a-42e1-ac81-7e3348f34cc4%2Froczfgr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Data below for the year ended December 31, 2018, relates to Houdini Inc. Houdini started business January 1, 2018, and uses the LIFO
retail method to estimate ending inventory.
Cost
Retail
Beginning inventory
66,0
00
104,
24
000
Net purchases
280,
000
420,
000
Net markups
20,0
00
40,0
00
Net markdowns
375,
00
Net sales
Estimated ending inventory at cost is:
O $90,720.
$91,600.
O $83,500.
None of these answer choices are correct.
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