Question

46. Eloise Corp. uses the FIFO retail inventory method and reports the following information: Cost. Retail....

46. Eloise Corp. uses the FIFO retail inventory method and reports the following information:

Cost. Retail.
Purchases. $21,450. $28,000
Sales. $24,800
Net markups. $1000
Beginning inventory. $2100. $3000
Net markdowns. $400

What is the FIFO value of ending inventory for Eloise Corp.?
A. $5068
B. $5004
C. $5053
D. $5100
Business   Accounting   
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Homework Answers

Answer #1

under FIFO units acquired first are sold first so ending inventory is left from last purchase

cost ending inventory
beginning inventory 2100 3000
Purchase 21450 28000
markup 1000
markdown (400)
Total inventory (excluding beg inventory) 21450 28600 21450/28600=.75 or 75%
Total inventory (including beg inventory ) 21450+2100= 23550 31600
sales (24800)
ending inventory at retail 6800

This inventory will be left from curren purchase so ending inventory at cost =ending inventory a retail * %

        = 6800 * .75

         = 5100

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