Question

As of January 1, 2017, Ayayai Inc. adopted the retail method of accounting for its merchandise inventory.

To prepare the store’s financial statements at June 30, 2017, you obtain the following data.

		Cost			Selling Price
Inventory, January 1		$27,100			$46,000
Markdowns					9,600
Markups					10,100
Markdown cancellations					6,700
Markup cancellations					3,300
Purchases		107,580			154,200
Sales revenue					153,200
Purchase returns		2,600			3,800
Sales returns and allowances					8,100

Part 1

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

Compute Ayayai’s June 30, 2017, inventory under the conventional retail method of accounting for inventories. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.)

Inventory under the conventional retail method

$

Part 2

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

Without prejudice to your solution to part (a), assume that you computed the June 30, 2017, inventory to be $55,080 at retail and the ratio of cost to retail to be 58.91%. The general price level has increased from 100 at January 1, 2017, to 108 at June 30, 2017. Compute the June 30, 2017, inventory at the June 30 price level under the dollar-value LIFO retail method. (Round ratios for computational purposes to 2 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.)

Ending inventory at dollar-value LIFO cost

$

Answer 1