(Retail Inventory Method and LIFO Retail) Presented below are a number of items that may be encountered in computing the cost to retail percentage when using the conventional retail method or the LIFO retail method.
1. Markdowns.
2. Markdown cancellations.
3. Cost of items transferred in from other departments.
4. Retail value of items transferred in from other departments.
5. Sales discounts.
6. Purchases discounts (purchases recorded gross).
7. Estimated retail value of goods broken or stolen.
8. Cost of beginning inventory.
9. Retail value of beginning inventory.
10. Cost of purchases.
11. Retail value of purchases.
12. Markups.
13. Markup cancellations.
14. Employee discounts (sales recorded net).
Instructions
For each of the items listed above, indicate whether this item would be considered in the cost to retail percentage under (a) conventional retail and (b) LIFO retail.