ABC Company uses the retail inventory method to value its inventory for financial reporting purposes....
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Accounting
ABC Company uses the retail inventory method to value its inventory for financial reporting purposes. The company compiled the following cost and retail data for 20X1.
Cost
Retail
Beginning Inventory
7,000,000
10,000,000
Purchases
12,800,000
15,000,000
Net Markups
2,000,000
Net Markdowns
1,000,000
Net Sales
12,000,000
3) If ABC wishes to approximate LIFO assuming price levels have remained stable, determine the best estimate.
4) If ABC wishes to approximate LIFO assuming price levels have increased 12% since the beginning base level, determine the best estimate.
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