Retail Inventory Method The Turner Corporation uses the retail inventory method. The following information relates to 2007:
|
Cost |
Retail |
Cost |
Retail |
|
Inventory, January 1 |
$29,000 |
$ 45,000 Additional markups |
$50,000 |
|
Purchases (gross price) |
140,000 |
190,000 Markup cancellations |
10,000 |
|
Purchases discounts taken |
3,000 |
— Markdowns |
15,000 |
|
Purchases returns |
5,000 |
8,000 Markdown cancellations |
3,000 |
|
Freight in |
20,000 |
— Sales |
190,000 |
|
Employee discounts |
— |
3,000 |
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)