Comprehensive The EKC Company uses the retail inventory method. The following information for 2007 is available:
|
Cost |
Retail |
Cost |
Retail |
|
|
Inventory, January 1 |
$100,000 |
$180,000 |
Markdowns |
$15,000 |
|
Purchases (gross price) |
320,000 |
600,000 |
Markdown cancellations |
4,000 |
|
Purchases discounts taken |
6,000 |
— |
Sales |
610,000 |
|
Freight in |
16,000 |
— |
Sales returns |
30,000 |
|
Additional markups |
— |
60,000 |
Sales discounts |
10,000 |
|
Markup cancellations |
— |
12,000 |
Required
Compute the cost of the ending inventory under each of the following cost flow assumptions:
1. FIFO
2. Average cost
3. LIFO
4. Lower of cost or market (based on average cost)