Amiras 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.
Retail
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 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 to be reported in the balance sheet.
c. On the basis of the information in part (b), compute cost of goods sold.
