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Question: Leonard Company began operations late in 2016

Leonard Company began operations late in 2016 and adopted the conventional retail inventory method. Because there was no beginning inventory for 2016 and no markdowns during 2016, the ending inventory for 2016 was $14,000 under both the conventional retail method and the LIFO retail method. At the end of 2017, management wants to compare the results of applying the conventional and LIFO retail methods. There was no change in the price level during 2017. The following data are available for computations.
Leonard Company began operations late in 2016 and adopted the conventional retail inventory method. Because there was no beginning inventory for 2016 and no markdowns during 2016, the ending inventory for 2016 was $14,000 under both the conventional retail method and the LIFO retail method. At the end of 2017, management wants to compare the results of applying the conventional and LIFO retail methods. There was no change in the price level during 2017. The following data are available for computations.


Instructions: 
Compute the cost of the 2017 ending inventory under both 
a. the conventional retail method and 
b. the LIFO retail method.

Instructions: Compute the cost of the 2017 ending inventory under both a. the conventional retail method and b. the LIFO retail method.





Transcribed Image Text:

Cost Retail $14,000 $20,000 80,000 9,000 1,600 81,000 Inventory, January 1, 2017 Sales revenue Net markups Net markdowns Purchases 58,800 7,500 Freight-in Estimated theft 2,000

2.99

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