Retail Inventory Method Harmes Company is a clothing store that uses the retail inventory method The following information relates to its operations during 2016 Cost Retail Inventory, January 1 $29,000 $40,200 Purchases 67,500 100,100 Markups (net) 2,200 Markdowns (net) 700 Sales 88,400 Required 1 Compute the ending inventory by the retail inventory method for the following cost flow assumption FIFO Round the cost to retail ratio to three decimal places If necessary, round dollar amounts to the nearest whole dollar HARMES COMPANY Calculation of ending inventory by retail inventory method FIFO 2016 Cost Retail $ $ $ $ $ $ $ $ 2 Compute the ending inventory by the retail inventory method for the following cost flow assumption Average cost Round the cost to retail ratio to three decimal places If necessary, round dollar amounts to the nearest whole dollar HARMES COMPANY Calculation of ending inventory by retail inventory method Average Cost 2016 Cost Retail $ $ $ $ $ $ 3 Compute the ending inventory by the retail inventory method for the following cost flow assumption LIFO Round the cost to retail ratio to three decimal places If necessary, round dollar amounts to the nearest whole dollar HARMES COMPANY Calculation of ending inventory by retail inventory method LIFO 2016 Cost Retail $ $ $ $ $ $ Ending inventory at LIFO cost Beginning layer (as stated in data) $29,000 New layer Total $ 4 Compute the ending inventory by the retail inventory method for the following cost flow assumption Lower of cost or market (based on average cost) Round the cost to retail ratio to three decimal places If necessary, round dollar amounts to the nearest whole dollar HARMES COMPANY Calculation of ending inventory by retail inventory method Lower of Cost or Market (based on average cost) 2016 Cost Retail $ $ $ $ $ $

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Retail Inventory Method Harmes Company is a clothing store that uses the retail inventory method. The following information relates to its operations during 2016: Cost

Retail Inventory Method

Harmes Company is a clothing store that uses the retail inventory method. The following information relates to its operations during 2016:

	Cost	Retail

Inventory, January 1	$29,000	$40,200
Purchases	67,500	100,100
Markups (net)		2,200
Markdowns (net)		700
Sales		88,400

Required:

1. Compute the ending inventory by the retail inventory method for the following cost flow assumption: FIFO. Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar.

HARMES COMPANY
Calculation of ending inventory by retail inventory method
FIFO 2016
	Cost	Retail
	$	$


	$	$

	$	$

		$
	$

2. Compute the ending inventory by the retail inventory method for the following cost flow assumption: Average cost. Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar.

HARMES COMPANY
Calculation of ending inventory by retail inventory method
Average Cost 2016
	Cost	Retail
	$	$



	$	$

		$
	$

3. Compute the ending inventory by the retail inventory method for the following cost flow assumption: LIFO. Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar.

HARMES COMPANY
Calculation of ending inventory by retail inventory method
LIFO 2016
	Cost	Retail
	$	$



		$
	$	$

		$
Ending inventory at LIFO cost
Beginning layer (as stated in data)	$29,000
New layer
Total	$

4. Compute the ending inventory by the retail inventory method for the following cost flow assumption: Lower of cost or market (based on average cost). Round the cost-to-retail ratio to three decimal places. If necessary, round dollar amounts to the nearest whole dollar.