Question
Data below for the year ended December 31, 2021, relates to Houdini Inc. Houdini started business January 1, 2021, and uses the LIFO retail method
Data below for the year ended December 31, 2021, relates to Houdini Inc. Houdini started business January 1, 2021, and uses the LIFO retail method to estimate ending inventory.
| Cost | Retail | |||||
| Beginning inventory | $ | 92,000 | $ | 122,000 | ||
| Net purchases | 385,560 | 560,000 | ||||
| Net markups | 34,000 | |||||
| Net markdowns | 54,000 | |||||
| Net sales | 501,000 | |||||
Current period cost-to-retail percentage is:
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Financial Accounting Theory and Analysis Text and Cases
Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey
10th edition
470646284, 978-0470646281
