A company uses the retail method of inventory. Data for the year 2013 follows. Compute the ending inventory at cost, assuming FIFO, LCM.
Beginning inventory (cost $19,840, retail $30,000)
Purchases (net cost $53,360, retail $86,000)
Mark-up (net, $6,000)
Markdowns (net, $2,000)

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The Answer of A company uses the retail method of inventory. Data for the year 2013 follows. Compute the ending inventory at cost, assuming FIFO, LCM.
Beginning inventory (cost $19,840, retail $30,000)
Purchases (net cost $53,360, retail $86,000)
Mark-up (net, $6,000)
Markdowns (net, $2,000)

A Company Uses the Retail Method of Inventory