The Johnny Fruit Company provided the following data related to its inventory at the end of the current year. Round percentages lo two decimal places.

Required

a. What are Johnny Fruit's ending inventory and cost of goods sold under the conventional retail method? 

b. What are Johnny Fruit's ending inventory and cost of goods sold under the basic retail method?

c. Which method provides the lower ending inventory value consistent with the lower-of-cost-or-market method?

Transcribed Image Text:

Cost Retail Description $ 17.800 Beginning inventoi y $28,000 Purehases 123,400 213,000 Addit onal markups 24,000 Markup cancellations 3,200 Markdowns 19,200 Markdown cancella tions 2,200 Sa es 200,000