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Nash Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for
Nash Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of August 2018. Inventory, August 1, 2018 At cost $ 90,900 At retail 137,200 Purchases (exclusive of freight and returns) At cost 204,576 At retail 263,400 21,700 Freight-in Purchase returns At cost 9,700 At retail 12,200 Markups 8,600 2,800 Markup cancellations Markdowns (net) 17,100 6,200 Normal spoilage and breakage Sales 311,000 (a) Using the conventional retail method, compute estimated lower-of-cost-or-market inventory for August 31, 2018. (Round ratios for computational purposes to O decimal places, eg 78% and final answer to O decimal places, eg. 28,987.) Ending inventory at lower-of-cost-or-market $
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