Amiras Corporation began operations on January 1, 2020, with a beginning inventory of $30,100 at cost and $50,000 at retail. The following information relates to 2020. 0 Retail0 Net purchases ($108,500 at cost) $150,000 Net markups 10,000 Net markdowns 5,000 Sales revenue 126,900 Instructions a. Assume Amiras decided to adopt the conventional retail method. Compute the ending inventory to be reported in the balance sheet. b. Assume instead that Amiras decides to adopt the dollar-value LIFO retail method. The appropriate price indexes are 100 at January 1 and 110 at December 31. Compute the ending inventory to be reported in the balance sheet. c. On the basis of the information in part (b), compute cost of goods sold.
Amiras Corporation began operations on January 1, 2020, with a beginning inventory of $30,100 at cost and $50,000 at retail. The following information relates to 2020. 0 Retail0 Net purchases ($108,500 at cost) $150,000 Net markups 10,000 Net markdowns 5,000 Sales revenue 126,900 Instructions a. Assume Amiras decided to adopt the conventional retail method. Compute the ending inventory to be reported in the balance sheet. b. Assume instead that Amiras decides to adopt the dollar-value LIFO retail method. The appropriate price indexes are 100 at January 1 and 110 at December 31. Compute the ending inventory to be reported in the balance sheet. c. On the basis of the information in part (b), compute cost of goods sold.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Amiras Corporation began operations on January 1, 2020, with a beginning inventory of $30,100 at cost and $50,000 at retail. The following information relates to 2020.
|
0 Retail0
|
|
| Net purchases ($108,500 at cost) |
$150,000
|
| Net markups |
10,000
|
| Net markdowns |
5,000
|
| Sales revenue |
126,900
|
Instructions
a. Assume Amiras decided to adopt the conventional retail method. Compute the ending inventory to be reported in the
b. Assume instead that Amiras decides to adopt the dollar-value LIFO retail method. The appropriate price indexes are 100 at January 1 and 110 at December 31. Compute the ending inventory to be reported in the balance sheet.
c. On the basis of the information in part (b), compute cost of goods sold.
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