retail inventory method carmel department store uses the retail inventory method on 692204
Retail Inventory Method
Carmel Department Store uses the retail inventory method. On December 31, 2008, the following information relating to the inventory was gathered:
|
|
Cost |
Retail |
|
Inventory, January 1, 2008 |
$ 26,550 |
$ 45,000 |
|
Sales |
|
430,000 |
|
Purchases |
309,000 |
435,000 |
|
Purchase discounts |
4,200 |
|
|
Freight in |
5,250 |
|
|
Markups |
|
30,000 |
|
Markdowns |
|
40,000 |
|
Sales discounts |
|
5,000 |
Compute the ending inventory value at December 31, 2008, using:
1. the average cost method.
2. the lower of cost or market method.