Miller Corporation began operations on January 1, 2014, with a beginning inventory of $10,600 at cost and $14,000 at retail. The following information relates to 2014.
Retail
Net purchases ($126,800 at cost) $180,000
Net markups 20,000
Net markdowns 12,000
Sales 171,000
Instructions
(a) Assume Miller decided to adopt the conventional retail method. Compute the ending inventory to be reported in the balance sheet.
(b) Assume instead that Miller decides to adopt the dollar-value LIFO retail method. The appropriate price indexes are 100 at January 1 and 110 at December 31. Compute the ending inventory to be reported in the balance sheet.
(c) On the basis of the information in part (b), compute cost of goods sold.