Intermediate Accounting: E9-10 Retail inventory method the Harmes Company

Intermediate Accounting
E9-10
Retail inventory method the Harmes Company is a clothing store that uses the retail inventory method the following information relates to its operations during 2010
Cost retail
inventory, Jan 1 28,400 40,200
Purchases 65,200 100,000
Markups 1,900
markdowns 400
sales 80,000

Compute the ending inventory by the retail method for the following cost assumptions
1. FIFO
2. LIFO
3. Average cost
4. Lower of cost or marker based on average cost
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