Data below for the year ended December 31, 2009, relates to Houdini Inc. Houdini started business January 1, 2009, and uses the LIFO retail method to estimate ending inventory.
Cost Retail
Beginning Inventory 66,000 104,000
Net Purchase 280,000 420,000
Net Markups 20,000
Net Markdowns 40,000
Net Sales 375,000
Estimated ending inventory at retail is?
On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following information is available:
Sales January 2 through July 8 700,000
Inventory January 1 130,000
Purchase January 1 - July 8 640,000
Gross Profit Margin 30%
What is the estimated inventory on July 8 immediately prior to the fire?