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Khaki Apparel is a chain of clothing stores that cater to sports apparel. It was started five years ago by a former basketball player who
Khaki Apparel is a chain of clothing stores that cater to sports apparel. It was started five years ago by a former basketball player who could not compete any longer due to injuries. Khaki provides you with the following data for the current year, which was obtained from the accounting records. KHAKI APPAREL COST AND RETAIL INFORMATION FOR APPLYING RETAIL INVENTORY METHOD FOR CURRENT YEAR Cost Retail 46,000 S 78,000 347,000 6,000 Inventory, January 1 Purchases Purchases Retums and Allowances Freight In Net Markups Net Markdowns Sales Discounts Sales 256,000 3,400 10,000 11,000 4,000 2,000 396,000 After discussing the operations with the owner, you learn that of the $10,000 charged to the freight in account, $3,600 was for delivery expenses to customers. All the other accounts are correctly stated REQUIRED: Determine the cost of the ending inventory for the company using the following retail inventory cost flow assumptions. Round the cost ratios to four decimal places and all dollar amounts to the nearest whole dollar (1 FIFO, non LCM 2) Average cost, non LCM (3) FIFO, LCM 4) Average cost, LCM
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